Hotel pipeline reaches 5,975 projects
The U.S. hotel construction pipeline contained 5,975 projects and 703,001 rooms at the end of the second quarter of 2026, according to Lodging Econometrics’ quarterly construction pipeline report.
The figures cover projects under construction, those expected to begin construction within the next 12 months, and projects in early planning. The pipeline reflects planned hotel development across chain scales and markets in the United States.
There were 1,081 projects with 133,216 rooms under construction as of midyear. Another 2,147 projects, representing 245,871 rooms, were scheduled to start construction within the following 12 months. Early planning accounted for 2,747 projects and 323,914 rooms.
The early planning category made up the largest portion of the pipeline by project count and room count. It includes properties that have been announced or are being developed but have not yet moved into construction.
Upper midscale and upscale segments lead development
Upper midscale hotels remained the largest segment of the construction pipeline, with 2,225 projects containing 214,027 rooms. The upscale segment followed with 1,282 projects and 159,252 rooms.
Combined, upper midscale and upscale hotels accounted for 59% of projects in the total pipeline and 53% of planned rooms. These categories include a large share of limited-service and full-service hotel development.
The luxury segment reached 103 projects and 25,496 rooms during the second quarter. That was an increase of 12% in projects and 21% in rooms from the same period a year earlier.
Upper upscale hotels also reached a quarterly high, with 367 projects and 65,021 rooms in the pipeline. The report did not provide a year-over-year comparison for that segment.
Project announcements and construction starts increase
New hotel project announcements totaled 280 projects and 33,423 rooms in the second quarter. Those totals were up 18% in projects and 23% in rooms from a year earlier.
Construction starts reached 176 projects with 20,056 rooms. Compared with the second quarter of 2025, starts increased 14% by project count and 17% by room count.
The report also identified growth in hotel conversions, which involve changing existing properties into hotels or placing them under different hotel brands. The conversion pipeline reached 1,567 projects and 152,044 rooms, a record level for the second quarter.
Conversions increased 15% in projects and 18% in rooms from the prior-year period. When renovations are included, conversions and renovation projects totaled 2,097 projects and 255,834 rooms. Their combined project count increased 7% year over year.
Hotel openings expected to increase through 2028
During the first half of 2026, 277 new hotels with 31,416 rooms opened in the United States, according to Lodging Econometrics.
The firm expects another 384 hotels with 43,404 rooms to open during the second half of the year. If those projections are met, the United States would add 661 hotels and 74,820 rooms in 2026. That would represent a 1.3% increase in hotel supply.
For 2027, Lodging Econometrics forecasts 738 hotel openings with 78,909 rooms, representing projected supply growth of 1.4%.
The company’s first forecast for 2028 calls for 832 hotels with 88,321 rooms to open in the United States. The estimate represents a projected 1.5% growth rate, exceeding the anticipated growth rates for 2026 and 2027.
The forecast indicates that planned hotel openings are expected to rise over the next two years, although projects in the pipeline may be affected by financing conditions, construction costs, market demand and changes in development schedules.
