What's Happening?
The U.S. hotel construction pipeline closed the fourth quarter of 2025 with 6,146 projects and 720,089 rooms, as reported by Lodging Econometrics. The pipeline is active across all stages, with a significant number of projects in the early planning phase. Upper midscale and upscale hotels lead the pipeline, while luxury hotels have shown positive growth. Brand conversions have reached a record high, indicating a trend towards rebranding existing properties. New hotel openings in 2025 expanded the national hotel supply by 1.3%, with further growth expected in the coming years.
Why It's Important?
The steady growth in hotel construction and brand conversions reflects a robust recovery in the hospitality sector. This expansion is crucial for meeting the increasing
demand for accommodation as travel and tourism rebound. The focus on brand conversions suggests a strategic shift towards optimizing existing assets to enhance competitiveness and market presence. This trend benefits hotel operators and investors by potentially increasing property value and attracting a broader customer base. The continued growth in hotel supply is also likely to stimulate job creation and economic activity in related sectors.
