U.S. HOTEL CONSTRUCTION increased slightly in December after 25 consecutive months of decline, according to STR. Projects in the later stages of development saw a reversal in their decline and luxury projects were up.
There are 159,344 rooms in construction during the month, up 0.3 percent, over Dec. 2021. As many as 213,066 rooms are in the final planning state, an increase of 15 percent over last year. STR pipeline data added that 240,092 rooms are under planning, a decline of 15.6 percent.
New York City, Phoenix and Dallas are set to see the largest supply percentage increases from current construction. The luxury and upscale segments would see the most supply.
“While the overall pipeline continued to contract year over year, December showed strength in the later phases of development,” said Alison Hoyt, STR’s senior director of consulting. “Over the past year, we’ve seen late-stage pipeline rooms consistently decline from 2021 levels, while rooms in the planning phase often showed double-digit growth. We started to see a change in this pattern in November, when final planning rooms significantly jumped year over year and planning rooms came down pretty firmly. The same occurred in December, with the only difference being construction increasing slightly over 2021. When looking strictly at volume, the in-construction phase has been fairly stable throughout the year, remaining under 160,000 rooms and showing month-over-month increases from July through October and again in December.”
Luxury segment reports the highest increase in hotel construction in December, up 5.3 percent containing 7,241 rooms, followed by upscale, up 4.6 percent with 41,111 rooms and upper midscale, increased 3.7 percent containing 43,946 rooms.
Upper upscale, up 3 percent with 20,140 rooms, midscale, increased 2.5 percent containing 10,766 rooms and Economy, up 0.9 percent with 6,482 rooms are also showing increased activity.
“Given the pricing power luxury chains have had over the past three years, it is no surprise the segments remain at the forefront in terms of projected growth,” said Hoyt. “The chain’s rapid room rate recovery and growth between 2020 and 2022 has led developers to push into the segment.”
New York City leads the construction pipeline with an increase of 8.5 percent containing 10,944 rooms, followed by Phoenix, up 7.1 percent with 4,968 rooms and Dallas, up 5 percent with 4,877 rooms. The construction pipeline increased in Nashville, up 4.8 percent containing 2,746 rooms and Detroit, up 4.7 percent with 2,192 rooms.
“Markets experiencing the highest number of luxury rooms in construction are those that performed well during COVID and/or are strong leisure destinations, with Fort Worth/Arlington, Texas; and New York City leading the list,” Hoyt said. “While NYC also has the most rooms in construction as a percentage of existing supply, the market will likely see a slowdown after ongoing projects are built due to new development restrictions in place. Nashville is also showing signs of a slowdown, so we could expect a shuffle in the top pipeline markets later in 2023.”
In an earlier report, Lodging Econometrics said that the construction pipeline showed positive trends in the third quarter of 2022 as total projects stood at 5,317 containing 629,489 rooms.
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.”
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Hyatt Hotels Corp. marked 45 years of its Park Hyatt brand.
It recently launched “Luxury Is Personal,” its first global campaign in more than five years.
Its luxury hotel portfolio has grown 146 percent since 2017.
HYATT HOTELS CORP. marked the 45th anniversary of its Park Hyatt brand, launched in 1980 with Park Hyatt Chicago. It also introduced “Luxury Is Personal,” its first global marketing campaign for the brand in more than five years.
“The Park Hyatt campaign celebrates luxury not just as a grand performance, but as an intimate convergence of refined details that resonate long after the stay,” said Katie Johnson, Hyatt’s vice president and global brand leader for luxury. “As we celebrate 45 years of Park Hyatt hotels, we are proud of the personal touch we bring to serving our guests and members and can’t wait to breathe new life into the brand as we head into our next chapter.”
The campaign coincides with Hyatt’s expansion of the Park Hyatt brand across Europe, Africa, Asia-Pacific and the Americas, the statement said. Hyatt reports its luxury hotel portfolio has grown 146 percent since 2017 and includes Park Hyatt, Alila and The Unbound Collection by Hyatt.
A recent Hyatt Inclusive Collection survey found that most Americans define quality time as moments with loved ones, but 82 percent say they don’t get enough.
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.
IHG launched its 20th global brand, Ruby, in the U.S.
The brand offers serves city-centers and urban locations with restrictions.
It focuses on major urban markets with new-build, conversion, and adaptive reuse.
IHG HOTELS & RESORTS introduced Ruby Hotels, its 20th global brand, to the U.S. It is designed to fit in city centers and urban locations with entry barriers and space constraints.
The company’s growth plan will focus on major urban markets and include new-build, conversion and adaptive reuse projects, IHG said in a statement.
“Ruby is a brand built for the future of hospitality,” said Jolyon Bulley, IHG's CEO for the Americas. “Its success in Europe speaks to the growing demand for flexible, lifestyle-focused hotels in highly traveled locations. Ruby’s U.S. introduction will complement our premium portfolio and offer owners a differentiated product with strong economics and scalable growth potential. We’re encouraged by the initial interest and buzz around Ruby, which reinforces our confidence in its appeal and ability to thrive in this market.”
Ruby, founded in Germany in 2013, joined the IHG portfolio earlier this year and has 34 open or pipeline hotels in European cities. The U.S. launch reflects IHG’s plan to grow the brand to more than 120 hotels in the next decade and more than 250 in 20 years.
Lauren Krostue, Ruby's vice president for global brand management, said Ruby allows IHG to connect with a new type of traveler—those who value unique stays at an accessible price point.
"In bringing Ruby to the U.S., we will retain what’s made the brand so special in Europe—including its unique design and operating model—while localizing certain elements to reflect market needs," she said. "We look forward to introducing the Ruby experience to a new group of owners and guests and showcasing what sets the brand apart in the increasingly popular ‘urban micro’ segment.”
IHG nearly doubled global conversion signings from 2023 to 2024, with conversions representing about 60 percent of openings and 40 percent of signings in the first quarter of 2025.
Announcement of $100,000 H-1B visa fee triggers panic among Indian professionals.
The fee applies only to new petitions.
IT companies are reportedly reviewing staffing and travel.
THE TRUMP ADMINISTRATION’S announcement of a $100,000 fee for new H-1B visa petitions, effective Sept. 21, reportedly triggered panic among Indian H-1B holders. Many rushed to book last-minute flights, resulting in fully booked planes and higher fares.
The move caused anxiety among IT employees whose work depends on U.S. assignments, according to India Today.
However, the U.S. Citizenship and Immigration Services later clarified that the fee applies only to new petitions, not existing visa holders, providing some relief but not ending widespread uncertainty.
Airports and travel agents reported a surge in cancellations and rescheduling requests, while families of visa holders faced disruptions during the festive season.
Friday’s announcement sparked further confusion, culminating in chaotic scenes aboard an Emirates flight from San Francisco to Dubai, AeroTime reported. The plane was held on the tarmac for three hours as H-1B holders tried to determine if they could re-enter the U.S. The policy change created confusion over who would be affected.
India’s external affairs ministry said the fee could have humanitarian consequences “by disrupting families.” The Indian government said it “hopes these disruptions can be addressed by U.S. authorities” and emphasized that the exchange of skilled workers has “contributed enormously” to both nations, The Guardian reported.
H-1B visas are valid for three years and can be renewed for another three. The Trump administration says the increased fee helps U.S. companies stay competitive and create more jobs. However, Indian stakeholders raised concerns about its impact on the IT sector, citing potential disruptions to operations and project timelines. IT companies are reportedly reviewing staffing and travel while managing higher compliance requirements.
“Service exports have finally been dragged into the global trade and tech war,” Madhavi Arora, chief economist at Emkay Global Financial Services, wrote in a note on Sunday, according to CNN.
Arora also suggested the policy could have an unexpected upside for India, potentially bringing talent back home. While it could concentrate top professionals within India’s largest tech firms, it could also “catalyze India’s transformation into a more powerful global innovation and delivery hub.”
Meanwhile, U.S. Citizenship and Immigration Services data for fiscal 2025, show Amazon as the top H-1B recipient, securing about 10,000 visas.
The recent 50 percent tariff imposed by the Trump administration on India was also met with backlash from the country.