NYC, Nashville lead U.S. hotel room openings in 2025
In 2026, 1,865 hotels with 198,319 rooms are expected to open
The U.S. is set to open 953 hotels with 108,366 rooms in 2025, led by New York City with 5,719 and Nashville with 2,849 rooms, according to CoStar.
By Vishnu Rageev RFeb 08, 2025
U.S. Hotel Openings 2025: Key Markets, Growth Trends & Industry Insights
THE U.S. IS expected to see 953 hotel openings with 108,366 rooms in 2025, with New York City and Nashville leading at 5,719 and 2,849 rooms, respectively, according to CoStar. Around 1,865 hotels with 198,319 rooms are projected to open in 2026.
Other markets, including San Diego, Dallas, and Phoenix, are projected to open 5,719, 2,849, and 2,818 rooms in 2025, the report said.
“The ongoing development in New York City is not surprising given the market’s status and its high performance in recent years,” said Isaac Collazo, STR’s senior director, analytics. “With major sources of leisure and business travel, New York reported the highest occupancy level of any U.S. market in both 2023 and 2024. Though fewer rooms are in construction compared to 2023, more are in the planning and final planning stages, pointing to continued investment in the long term.”
“Nashville is in a similar situation, with most rooms set to open across the Upper Midscale and Upscale classes this year,” he said. “Unlike in NYC, Nashville’s construction total is up from last year.”
In comparison, around 721 hotels with 73,682 rooms opened in 2025, CoStar said.
Collazo said U.S. hotel construction remained muted, with many projects on the sidelines, as shown by large gains in the planning stages at the end of 2024.
“Restrictive capital and lending standards, along with high interest rates and construction costs, will keep construction volume well below the high seen in 2019 for some time,” he said. “The U.S. is expected to open nearly 34,000 upper midscale rooms in 2025—the same segment that leads the in-construction room count.”
AHLA’s 2025 State of the Industry report said hotels struggled in 2024 as costs outpaced revenue, slowing growth and hiring, but opportunities remain through guest spending, traveler shifts, and major events.
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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