Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
THE U.S. HOTEL construction pipeline continued to grow in the third quarter, up 7 percent year-over-year by projects and rooms, according to Lodging Econometrics(LE). The growth was moderate, with current project count 3 percent below and rooms 14 percent below the all-time high of 5,883 projects and 785,547 rooms reached in the second quarter of 2008.
There were a total of 5,704 projects and 672,676 rooms in the construction pipeline by the end of the quarter, according to LE’s Construction Pipeline Trend Report for the U.S. That’s up from 5,572 projects with 660,061 rooms at the end of the second quarter.
There were 1,063 projects with 140,331 rooms under construction at the close of the third quarter, an increase of 8 percent by projects and 4 percent by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 2,234 projects with 257,729 rooms, up 8 percent YOY by projects and 9 percent by rooms. Projects and rooms in the early planning stage each increased 7 percent to stand at 2,407 projects with 274,616 rooms, just 27 projects and 5,296 rooms shy of the all-time high.
“Analysts at LE report that the upper midscale chain scale has the largest project count of all chain scales in the total U.S. construction pipeline, accounting for 38 percent of the projects and standing at 2,149 projects and 209,895 rooms at the third quarter’s close,” LE said in a statement. “Following is the upscale chain scale with 1,376 projects with 170,943 rooms at the close of the quarter. Together, these two chain scales comprise 62 percent of all projects and 57 percent of the rooms in the total U.S. hotel construction pipeline.”
Also, 2,176 project and 223,518 rooms in the pipeline are extended stay projects, making up 38 percent of projects in the total pipeline. Middle tier extended-stay brands make up the majority of projects in the segment for the quarter, accounting for 63 percent of projects in the total extended stay pipeline and 24 percent of projects in the total U.S. pipeline.
Conversions hit the highest counts ever recorded by LE, ending the quarter at 1,100 projects with 146,757 rooms. Combined, the renovation and conversion active pipeline accounts for 1,912 projects and 285,568 rooms, a peak total room count at the end of the quarter, and LE analysts expect this trend to continue over the next two years.
“Through the third quarter, 345 new hotels with 41,115 rooms opened in the U.S. with another 182 hotels with 24,790 rooms anticipated to open by the end of the year,” the research firm said. “LE analysts forecast a total of 527 new hotels with 65,905 rooms to open in 2023, representing a 1.2 percent increase in new hotel supply. LE analysts expect new hotel openings to increase in 2024 and 2025, representing a 1.4 percent and 1.5 percent supply increase, respectively.”
The Highland Group: Extended-stay occupancy, RevPAR and ADR declined in August.
Room revenue rose 0.4 percent, while demand increased 2.2 percent.
August marked the second time in 47 months that supply growth exceeded 4 percent.
U.S. EXTENDED-STAY OCCUPANCY fell 2.1 percent in August, its eighth consecutive monthly decline, while ADR declined 1.8 percent and RevPAR dropped 3.9 percent for the fifth consecutive month, according to The Highland Group. However, total extended-stay room revenue rose 0.4 percent year over year.
The Highland Group’s “US Extended-Stay Hotels Bulletin: August 2025” noted that summer leisure travel has a greater impact on the overall hotel industry than on extended-stay hotels.
“August’s performance metrics further indicated that economy extended-stay hotels are weathering the hotel industry downturn better than most hotel classes, especially at lower price points,” said Mark Skinner, The Highland Group partner.
The 2.1 percent drop in extended-stay hotel occupancy in August was the eighth straight month of decline, the report said. Occupancy declined more than the 1.3 percent drop STR/CoStar reported for all hotels. However, extended-stay occupancy was 11.3 percentage points higher than the overall hotel industry, consistent with long-term late-summer trends.
The 1.8 percent decline in extended-stay ADR was partly due to a larger share of economy supply in August 2025 versus August 2024, the report said. Economy extended-stay ADR fell for the first time since May 2024 but outperformed the 3.4 percent drop for all economy hotels reported by STR/CoStar. Mid-price extended-stay ADR also declined, while upscale extended-stay ADR fell more than upscale hotels overall.
RevPAR fell 3.9 percent in August, the fifth straight monthly decline and the largest in 2025. The overall drop was greater than individual segment decreases because economy supply made up a larger share than in August 2024. STR/CoStar reported RevPAR declines of 5.7 percent for economy, 2.6 percent for mid-price and 2 percent for upscale hotels.
Revenue, demand and supply trends
Extended-stay room revenue rose 0.4 percent in August from a year earlier, The Highland Group said. STR/CoStar reported overall hotel revenue fell 0.1 percent and excluding luxury and upper-upscale segments, revenue fell 2 percent. STR/CoStar also reported August room revenue declines of 6.4 percent for economy hotels, 1.4 percent for midscale and 0.7 percent for upscale compared to August 2024.
Extended-stay demand rose 2.2 percent in August, the second-largest monthly increase in seven months. STR/CoStar reported total hotel demand fell 0.4 percent. Adjusting for the extra day in February 2024, extended-stay demand has grown in 32 of the past 33 months.
August was the second time in 47 months that supply growth exceeded 4 percent, the report said. Supply has risen about 3 percent year to date. Annual supply growth ranged from 1.8 to 3.1 percent over the past three years, below the long-term 4.9 percent average.
The 8 percent rise in economy extended-stay supply, with minimal change in mid-price and upscale rooms, is mainly due to conversions, as new economy construction accounts for about 3–4 percent of rooms compared to a year ago.
The Highland Group reported that economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their class counterparts. The report noted 602,980 extended-stay rooms at quarter-end, a net gain of 17,588 rooms over the past year, the largest in three years.
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AHLA Foundation distributed $710,000 in scholarships to 246 students.
Nearly 90 percent of recipients come from underrepresented communities.
The foundation funds students pursuing education and careers in the lodging sector.
AHLA FOUNDATION DISTRIBUTED $710,000 in academic scholarships to 246 students at 64 schools nationwide for the 2025–2026 academic year. Nearly 90 percent of recipients are from underrepresented communities, reflecting the foundation’s focus on expanding access to hospitality careers.
The foundation awards academic scholarships annually to students in hospitality management and related programs, it said in a statement.
“Our scholarship program is helping ensure the next generation of talent has the resources to pursue careers in the hospitality industry,” said Kevin Carey, AHLA Foundation's president and CEO. “We’ve invested millions of dollars over the last several decades to recruit and support future leaders who will strengthen our industry.”
It provides funding to help students pursue education and careers in the lodging sector, the statement said. Award decisions are based on applicants’ academic performance, extracurricular involvement, recommendations and financial need.
In September, AHLA Foundation, the International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration announced plans to expand education opportunities for hospitality students. The alliance aim to provide data, faculty development and student engagement opportunities.
The U.S. government shut down at midnight after Congress failed to agree on funding.
About 750,000 federal employees will be furloughed daily, costing $400 million.
Key immigration and labor programs are halted.
THE FEDERAL GOVERNMENT shut down at midnight after Republicans and Democrats failed to agree on funding. Disputes over healthcare subsidies and spending priorities left both sides unwilling to accept responsibility.
The shutdown could cost America’s travel economy $1 billion a week, the U.S. Travel Association said previously. It will disrupt federal agencies, including the Transportation Security Administration and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion each week—and affecting millions of travelers and businesses while straining an already overextended federal travel workforce,” Freeman said. “While Congress recently provided a $12.5 billion down payment to modernize our nation’s air travel system and improve safety and efficiency, this modernization will stop in the event of a shutdown.”
USTA said that halting air traffic controller hiring and training would worsen a nationwide shortage of more than 2,800 controllers and further strain the air travel system.
About 750,000 federal workers are expected to be furloughed each day at a cost of about $400 million, according to the Congressional Budget Office. Essential services to protect life and property remain operational, CNN reported. The Department of Education said most of its staff will be furloughed, while the Department of Homeland Security will continue much of its work. Agencies released contingency plans before the deadline.
Immigration services are directly affected. Most U.S. Citizenship and Immigration Services operations continue because they are fee funded, but programs relying on appropriations—such as E-Verify, the Conrad 30 J-1 physician program and the special immigrant religious worker program—are suspended. Houston law firm Reddy Neumann Brown said employers must manually verify I-9 documents if E-Verify goes offline, though USCIS has historically extended compliance deadlines.
The Department of Labor will halt its Office of Foreign Labor Certification, freezing labor condition applications for H-1B visas, PERM applications and prevailing wage determinations, India’s Business Standard reported. Its FLAG system and related websites will also go offline. Immigration lawyers warn of ripple effects, since USCIS depends on DOL data. The Board of Alien Labor Certification Appeals and administrative law dockets will also pause.
Visa and passport services at U.S. consulates generally continue because they are fee funded. If revenue falls short at a post, services may be limited to emergencies and diplomatic needs.
Reuters reported that the disruption could delay the September jobs report, slow air travel, suspend scientific research, withhold pay from active-duty U.S. troops and disrupt other government operations. The funding standoff involves $1.7 trillion in discretionary agency spending—about one-quarter of the $7 trillion federal budget, according to Reuters. Most of the rest goes to health programs, retirement benefits and interest on the $37.5 trillion national debt.
According to The New York Times, unlike previous shutdowns, Trump is threatening long-term changes to the government if Democrats do not concede to demands, including firing workers and permanently cutting programs they support.
The U.S. led global travel and tourism in 2024 with $2.6 trillion in GDP, WTTC reported.
India retained ninth place with $249.3 billion in GDP.
The sector supported 357 million jobs in 2024, rising to 371 million in 2025.
THE U.S. LED global travel and tourism in 2024, contributing $2.6 trillion to GDP, mainly from domestic demand, according to the World Travel & Tourism Council. Europe accounted for five of the top 10 destinations, while India ranked 9th.
WTTC opened its 25th Global Summit in Rome with research showing investment reached $1 trillion in 2024, led by the U.S., China, Saudi Arabia and France.
“These results tell a story of strength and opportunity,” said Gloria Guevara, WTTC interim CEO. “The U.S. remains the world’s largest travel and tourism market, China is surging back, Europe is powering ahead, and destinations across the Middle East, Asia and Africa are delivering record growth. This year, we are forecasting that our sector will contribute a historic $2.1 trillion in 2025, surpassing the previous high of $1.9 trillion in 2019. As Italy hosts this year’s Global Summit, its role as a G7 leader showcases the importance of tourism in driving economies, creating jobs and shaping our shared future.”
The U.S. kept its top position, but international visitor spending is expected to fall by $12.5 billion in 2025, limiting growth to 0.7 percent. China, the second-largest market, contributed $1.64 trillion in 2024 and is forecast to grow 22.7 percent this year. Japan, the fifth-largest market, is expected to rise from $310.5 billion to nearly $325 billion.
Italy, which hosted the summit and is a G7 member, contributed $248.3 billion in 2024, driven by international visitors and the meetings and events sector. Germany, the third-largest market, contributed $525 billion. The UK generated $367 billion despite a fall in international visitor spending, while France and Spain added $289 billion and $270 billion. Europe’s growth was supported by both cultural and modern sectors.
India contributed $249.3 billion in 2024. In June, WTTC reported international visitors spent $36.09 billion in India in last year, up 9 percent from 2019.
Jobs on the rise
Travel and tourism supported 357 million jobs in 2024 and is expected to reach 371 million in 2025, increasing its share of global employment, the WTTC report found. By 2035, the sector is projected to support one in eight jobs worldwide, adding 91 million positions—most in Asia-Pacific—and accounting for one in three new jobs globally.
Uncertainties over trade tariffs and geopolitical tensions could limit sector growth in 2025, the report said. Travel and tourism’s GDP contribution is forecast to rise 6.7 percent, returning toward pre-pandemic averages but still outpacing the 2.5 percent growth projected for the global economy.
The sector is expected to contribute $11.7 trillion, or 10.3 percent of global GDP and add 14.4 million jobs, bringing total employment to 371 million, or 10.9 percent of global jobs. International visitor spending is projected to fully recover, rising 8.6 percent above 2019 levels to nearly $2.1 trillion, while domestic visitor spending is expected to rise 13.6 percent to $5.6 trillion. Annual growth for 2025 is forecast at 10 percent for international and 5.1 percent for domestic spending.
In May, WTTC projected the U.S. stood to lose $12.5 billion in international travel spending this year, falling to under $169 billion from $181 billion in 2024. The council said U.S. needs to do more to welcome international visitors rather than “putting up the ‘closed’ sign.”
President Donald Trump will meet Congress as a shutdown looms.
Democrats say they are ready to negotiate a bipartisan deal.
Thousands of federal jobs and the U.S. travel economy are at risk if a shutdown occurs.
PRESIDENT DONALD TRUMP will meet Congressional leaders on Monday after Senate Democrats rejected a Republican stopgap spending bill to fund the government until Nov. 21. The U.S. Travel Association recently warned a government shutdown could cost the travel economy $1 billion a week.
Democrats want spending bills to reverse Trump’s Medicaid cuts, while Republicans want healthcare addressed in broader budget talks, according to Al Jazeera.
Senate Minority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, House Speaker Mike Johnson and Senate Majority Leader John Thune are expected to meet Trump at the White House.
“If it has to shut down, it’ll have to shut down. But they’re the ones that are shutting down government,” Trump told ABC News.
Democrats shifted the blame to Trump but also kept the door open to negotiations.
“President Trump has once again agreed to a meeting in the Oval Office,” the Democratic leaders said. “As we have repeatedly said, Democrats will meet anywhere, at any time and with anyone to negotiate a bipartisan spending agreement that meets the needs of the American people. We are resolute in our determination to avoid a government shutdown and address the Republican healthcare crisis. Time is running out.”
The government will shut down Wednesday if Congress doesn’t pass a short-term spending bill. The Senate could vote Monday on an extension Democrats previously rejected, The Wall Street Journal reported.
The White House warned that thousands of government jobs could be at risk if the government shuts down at midnight Tuesday. In a memo to federal agencies, the administration said Reduction-in-Force plans would go beyond standard furloughs, according to POLITICO.
Trump reportedly warned Sunday of widespread layoffs if the government shuts down this week.
“We are going to cut a lot of the people that … we’re able to cut on a permanent basis,” he said.
More than 100,000 federal employees could lose their jobs as early as Tuesday if the government shuts down, India’s Times Now reported.
A shutdown would disrupt federal agencies, including the TSA and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
A recent Ipsos survey cited in the USTA letter found 60 percent of Americans would cancel or avoid air travel during a shutdown. About 81 percent said shutdowns harm the economy and inconvenience travelers and 88 percent said Congress should act across party lines to prevent one.