U.S. hotel construction finished the fourth quarter of 2025 with a total pipeline of 6,146 projects and 720,089 rooms, according to the latest Hotel Construction Pipeline Trend Report from Lodging Econometrics. The total pipeline was down both quarter over quarter and year over year, but the final months of 2024 set record highs for certain segments and categories.
In 2025, there were 640 new hotel openings with 74,079 rooms in the U.S., expanding the nation’s hotel supply by 1.3% at year-end. Lodging Econometrics projected “continued growth in the years ahead, with 708 new hotels and 80,034 rooms expected to open in 2026,” amounting to a 1.4% increase in supply.
Luxury, conversions lead
Upper midscale hotels continued to lead the pipeline across chain scales in Q4, with 2,275 projects and 218,526 rooms, per the report, followed by upscale hotels, with 1,336 projects and 167,316 rooms for the period. The midscale segment remained stable with 956 projects and 80,260 rooms, while the luxury hotels pipeline grew to reach a record 95 projects with 22,045 rooms in Q4.
Brand conversations in the pipeline reached a record high by the close of Q4, with projects growing 12% year over year to 1,497 and rooms growing 16% year over year to 148,981. Hotel renovations were mostly flat with 621 projects comprising 129,647 rooms. However, Lodging Econometrics said in the report that “together, renovation and conversion projects represent a significant portion of hotel development activity, reaching a new record-high totaling 2,118 projects with 278,628 rooms.”
Dallas drives US pipeline
The Dallas market continued to drive the nation’s hotel construction pipeline in the fourth quarter with 193 projects totaling 23,720 rooms. Atlanta followed with 159 projects and 17,804 rooms, and Phoenix was third with 124 projects and 16,303 rooms. In addition, Nashville, Tennessee, had 120 projects and 15,983 rooms and Austin, Texas, had 120 projects and 14,120 rooms.
In terms of markets leading in the under-construction stage of the pipeline, Phoenix was on top, with 35 projects and 4,829 rooms, followed by Dallas with 34 projects and 3,663 rooms, New York with 29 projects and 5,689 rooms, Miami with 24 projects and 4,843 rooms and Atlanta with 21 projects and 2,206 rooms.
Dallas continued to lead the pack with the largest number of planned construction starts over the next 12 months, with 74 projects and 8,202 rooms, immediately followed by Atlanta, Austin, California’s Inland Empire and Nashville.
Dallas’ market strength is also evident when it comes to the early planning stage, per the report, which said the city had 85 projects and 11,855 rooms in the works. Atlanta, Nashville, the Inland and Orlando rounded out the top five.
“These project counts underscore substantial activity in the U.S. hotel sector, with the South and Southwest regions continuing to lead new hotel construction,” the report said.
Houston and Atlanta led in terms of hotel renovations and conversions at the end of Q4, with each city at 35 projects and 5,411 and 4,314 rooms, respectively. Washington, D.C., Chicago and New York followed.
Meanwhile, Phoenix had the largest number of new project announcements with 12 projects, or 1,347 rooms, followed by Atlanta and St. Louis.
Forward outlook
There were a total of 285 new project announcements with 32,358 rooms entering the pipeline in Q4. Construction starts throughout 2025 stood at 668 total projects, comprising 78,530 rooms, and 148 projects comprising 17,623 rooms broke new ground in Q4.
There are currently 1,088 projects under construction, comprising 134,380 rooms. Looking ahead, the report said there are 2,175 projects with 253,750 rooms scheduled to start construction within the next 12 months. Projects in the early planning stage accounted for the majority of the projects in the active pipeline, closing the quarter with 2,883 projects and 331,959 rooms.
Analysts for Lodging Econometrics said in a press release that they expected “accelerated growth in new hotel openings again in 2027,” with 824 new hotels and 88,095 rooms scheduled to open in the U.S. by the end of next year, for a 1.5% anticipated expansion in the national hotel census.
Phoenix is projected to maintain a top position in 2026 with 23 new hotel openings and 3,326 rooms. New York is expected to open 22 hotels and 3,795 rooms.
In Texas, Dallas is projected to open 19 hotels and 2,295 rooms, with Austin projected to open 13 hotels 1,738 rooms. In California, the Inland Empire was projected to open 12 hotels and 1,024 rooms.
For 2027, Lodging Econometrics expects Dallas to lead openings with 37 new hotels and 3,198 rooms, followed by Atlanta, the Inland Empire, Phoenix and Los Angeles.
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