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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.

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