Skip to content

Search

Latest Stories

LE: U.S. hotel pipeline grew in Q1

Approximately 1,152 projects were under construction in the U.S.

U.S. hotel construction pipeline for Q1 2025, showing 6,376 projects and 749,561 rooms across upscale, upper midscale, and midscale segments, sourced from Lodging Econometrics.

The U.S. hotel pipeline at the end of the first quarter of 2025 totaled 6,376 projects and 749,561 rooms, reflecting a 5 percent year-over-year increase in projects and a 6 percent increase in rooms, according to Lodging Econometrics.

U.S. hotel pipeline growth: 5% More Projects, 6% More Rooms

THE U.S. HOTEL pipeline consisted of 6,376 projects and 749,561 rooms at the end of the first quarter of 2025, according to Lodging Econometrics. These totals represent a 5 percent year-over-year increase in projects and a 6 percent increase in rooms compared to the first quarter of 2024.

LE’s “Q1 2025 U.S. Hotel Construction Pipeline Trend Report” found 1,152 projects comprising 145,368 rooms under construction in the U.S., up 1 percent by projects and 3 percent by rooms year over year. Projects scheduled to start construction in the next 12 months totaled 2,286 projects with 263,370 rooms, reflecting a 1 percent increase in both projects and rooms year over year.


Most notably, project and room totals in the early planning stage experienced significant growth, increasing 10 percent by projects and 13 percent by rooms year over year, reaching 2,938 projects and 340,823 rooms, respectively, LE said.

The top three chain scales by total projects at the end of the first quarter are upscale, with 1,443 projects and 179,295 rooms; upper midscale, with 2,338 projects and 226,349 rooms; and midscale, with 974 projects and 82,094 rooms, the report said. These three chain scales account for approximately 75 percent of the projects in the total U.S. construction pipeline.

However, upper upscale chain scale projects reached record highs of 362 projects and 70,603 rooms, up 10 percent by projects and 7 percent by rooms year over year. Similarly, the midscale chain scale hit all-time highs with 974 projects and 82,094 rooms, increasing 10 percent by projects and 9 percent by rooms year over year.

LE’s report also highlighted continued growth in brand conversions, reaching a record high of 1,421 projects with 136,668 rooms, up 13 percent by projects and 16 percent by rooms year over year. Combined hotel conversion and renovation activity hit a record-high project total, with 2,050 projects and 269,435 rooms.

New project announcements during the first quarter totaled 313 projects and 37,912 rooms. Projects starting construction during the first quarter of 2025 increased 21 percent by projects and 41 percent by rooms compared to fourth-quarter 2024 new construction start totals. This indicates that developers pressed forward with current projects, suggesting an upbeat approach to development in early 2025.

From January through March 2025, 161 new hotels with 18,767 rooms opened across the U.S. Between the second and fourth quarters, LE analysts forecast an additional 579 projects with 64,781 rooms will open, bringing the total to 740 new hotels with 83,548 rooms by year-end, resulting in a 1.5 percent growth rate.

Looking ahead, LE analysts anticipate 848 new hotels with 92,892 rooms will open by year-end 2026, resulting in a 1.6 percent increase in supply.

A recent American Hotel & Lodging Association report found Los Angeles still struggling with the pandemic's long-term effects and recent wildfires, with international visitation remaining significantly below 2019 levels—more so than any other major U.S. city.

More for you

IHCL denies sale of NYC’s Pierre Hotel
Photo credit: The Pierre

IHCL denies sale of NYC’s Pierre Hotel

Summary:

  • IHCL said reports of Taj exiting The Pierre Hotel are incorrect and misleading.
  • Media reported the Central Park hotel could sell for around $2 billion.
  • The company holds leasehold rights and continues to operate the New York hotel.

INDIAN HOTELS CO. Ltd. said media reports on Taj exiting its stake in The Pierre Hotel in New York are incorrect, misleading and speculative. In an exchange filing, IHCL stated it does not own The Pierre, but holds leasehold rights and continues to operate the hotel.

Keep ReadingShow less
American Franchise Act announced in U.S. Congress to protect hotel franchising and jobs

House unveils act to boost franchise business

Summary:

  • House introduces AFA to boost franchise model and hotel operations.
  • The act establishes a joint employer standard.
  • AHLA backs the bill, urging swift adoption.

THE HOUSE Of Representatives introduced the American Franchise Act, aimed at supporting the U.S. franchising sector, including 36,000 franchised hotels and 3 million workers nationwide. The American Hotel & Lodging Association, backed the bill, urging swift adoption to boost the franchise model and clarify joint employer standards.

Keep ReadingShow less
Noble Investment Group Mobile Alabama

Noble breaks ground on StudioRes in Mobile, AL

Summary:

  • Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
  • The 10th StudioRes expands Noble’s long-term accommodations platform.
  • Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.

NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.

Keep ReadingShow less
The Boxer Boston hotel sold by Hersha Hotels to Eurostars Hotels for $23.6 million
Photo Credit: The Boxer Boston

Hersha sells ‘Boxer Boston’ to Eurostars

Summary:

  • Hersha Hotels & Resorts sold The Boxer Boston to Eurostars Hotels.
  • The company acquired the property in 2012 for $12.6 million.
  • The property now sold for $23.6 million.

HERSHA HOTELS & RESORTS sold The Boxer Boston, an 80-room hotel in Boston’s West End, to Eurostars Hotels, part of Spain’s Grupo Hotusa. The company, which reportedly acquired the property in 2012 for $12.6 million, received $23.6 million for it.

Keep ReadingShow less
Peachtree Group Inc. 5000 2025

Peachtree receives two recognitions

Summary:

  • Peachtree recognized by Inc. and the Atlanta Business Chronicle.
  • Named to the 2025 Inc. 5000 list for the third year.
  • Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing companies.

PEACHTREE GROUP ENTERED the 2025 Inc. 5000 list for the third consecutive year. The company also won the Atlanta Business Chronicle Pacesetter Awards as one of the city’s fastest-growing private companies.

Keep ReadingShow less