Summary:
- The second quarter pipeline totaled 6,280 projects with 737,036 rooms, up 3 percent year over year; 1,120 projects with 138,776 rooms were under construction.
- Extended-stay brands made up 39 percent of the pipeline with 2,473 projects and 252,028 rooms, up 3 percent in projects and 2 percent in rooms year over year.
- LE expects 735 hotels with 84,788 rooms to open in 2025, up 25 percent from 2024; 823 hotels with 89,073 rooms are projected for 2026.
THE U.S. HOTEL construction pipeline grew 3 percent year-over-year in both projects and rooms in the second quarter, according to Lodging Econometrics. LE also provided its first forecast for 2027.
Approximately 6,280 projects with 737,036 rooms were in the pipeline in the second quarter, according to LE’s Q2 2025 U.S. Hotel Construction Pipeline Trend Report. At quarter’s end, 1,120 projects with 138,776 rooms were under construction.
The report shows 2,263 projects with 260,052 rooms scheduled to start within the next 12 months.
Projects and rooms in the under construction and next 12 months stages were down year over year at the end of the second quarter, the report said. Projects and rooms in early planning rose 13 percent and 14 percent year over year, ending the quarter at 2,897 projects and 338,208 rooms.
Extended-stay leads
Extended-stay brands account for 38 percent of projects under construction, 43 percent of those set to start in the next 12 months and 37 percent in early planning, LE said. The segment totals 2,473 projects with 252,028 rooms, representing 39 percent of the pipeline, up 3 percent in projects and 2 percent in rooms year over year.
Middle-tier extended-stay brands lead the segment with 1,625 projects and 152,557 rooms, up 6 percent in projects and 5 percent in rooms year over year. Upper-tier brands have 670 projects with 79,103 rooms and lower-tier brands have 178 projects with 20,368 rooms.
In the first two quarters, 148 extended-stay hotels with 15,397 rooms opened in the U.S.
LE forecasts 293 openings with 30,341 rooms by year-end 2025, a 5 percent increase in extended-stay supply.
In 2026, 340 extended-stay hotels with 34,909 rooms are expected to open, a 5.5 percent increase in supply. In 2027, LE forecasts 385 openings with 39,801 rooms, a 5.9 percent increase.
Chain scales fuel growth
LE analysts report that the upper midscale chain scale leads the U.S. pipeline with 2,282 projects and 219,875 rooms at the second quarter. The upscale chain scale follows with 1,427 projects and 177,756 rooms.
Upscale and upper midscale projects account for 59 percent of the total pipeline.
Combined with midscale, the top three chain scales total 4,658 projects with 477,066 rooms, representing 74 percent of all projects and 65 percent of all rooms, the report said. The upper upscale chain scale grew 11 percent year over year to 360 projects with 67,680 rooms. Midscale rose 6 percent to 949 projects with 79,435 rooms.
Development, conversions and outlook
According to LE analysts, 329 hotels with 39,628 rooms opened in the U.S. during the first two quarters of 2025. In the second quarter, 237 new projects with 27,101 rooms were announced and 155 projects with 17,169 rooms began construction.
Announced renovations and conversions totaled 1,956 projects with 259,495 rooms. Conversions rose 11 percent year over year to 1,364 projects with 129,164 rooms. Renovations reached 592 projects with 130,331 rooms. Combined, they represent 31 percent of all projects and 35 percent of all rooms in the non-new-construction pipeline.
LE forecasts 406 more hotels with 45,160 rooms to open in 2025, bringing the year-end total to 735 hotels with 84,788 rooms, a 1.5 percent increase in supply. This marks a 25 percent rise over 2024, when 590 hotels with 68,716 rooms opened. In 2026, 823 hotels with 89,073 rooms are expected to open, a 1.6 percent increase.
LE’s first U.S. forecast for 2027 projects 902 hotel openings with 96,242 rooms, a 1.7 percent increase in supply.
In May, LE reported Dallas led all U.S. markets with 203 projects in the first quarter pipeline, reflecting a new all-time high.
