The global hotel construction pipeline has reached unprecedented levels, according to Lodging Econometrics’ (LE) Q2 2025 Hotel Construction Pipeline Trend Report. The report highlights a record-high of 15,871 projects encompassing 2,436,225 rooms, marking a year-over-year (YOY) increase of 3% in projects and 2% in rooms.
Current Pipeline Status
As of the end of the second quarter, there are 6,257 projects with 1,086,245 rooms currently under construction worldwide. While the number of projects remains unchanged from the previous year, the number of rooms has decreased by 3%. Projects scheduled to commence construction within the next 12 months have decreased by 3% YOY in terms of projects but have seen a 1% increase in rooms, totaling 3,870 projects and 551,188 rooms. The early planning stage has reached a record high with 5,744 projects and 798,792 rooms, reflecting a 10% increase in projects and a 9% increase in rooms compared to the previous year.
Chain Scale Dominance
The upper midscale and upscale chain scales dominate the global hotel construction pipeline, accounting for 52% of the projects. Upper midscale projects consist of 4,463 projects and 567,396 rooms, showing no change in project percentage but a 1% decrease in rooms YOY. Upscale projects have reached record highs with 3,852 projects and 655,674 rooms, marking a 5% increase in projects and a 3% increase in rooms YOY. Upper upscale projects also hit a record high with 1,807 projects and 385,396 rooms, increasing by 6% in projects and 1% in rooms YOY. Luxury projects have seen an 11% increase in projects and a 9% increase in rooms, totaling 1,267 projects and 245,665 rooms.
Geographical Distribution
The United States and China lead in project counts, with the U.S. having 6,280 projects and 737,036 rooms, and China with 3,733 projects and 672,224 rooms. Together, these two countries account for 64% of the global pipeline. India follows with a record-high of 761 projects and 99,195 rooms, while Saudi Arabia and Canada have 342 projects/92,187 rooms and 333 projects/44,764 rooms, respectively.
City-Specific Insights
Cities with the largest hotel construction pipelines include Dallas, Texas, with 199 projects and a record-high 24,497 rooms, followed by Atlanta, Georgia, with 165 projects and 19,027 rooms. Chengdu, China, has 143 projects and 25,331 rooms, while Nashville, Tennessee, and Austin, Texas, also show significant activity with 128 projects/17,025 rooms and 125 projects/14,598 rooms, respectively.
Outlook
The first half of 2025 saw the opening of 970 new hotels with 138,168 rooms globally, with an additional 1,884 new hotels and 280,079 rooms expected by the end of the year. LE analysts forecast a total of 2,854 new hotels with 418,247 rooms to open in 2025. The momentum is expected to continue, with projections of 2,531 new hotels and 382,942 rooms opening by the end of 2026. LE analysts project 2,554 new hotels with 382,282 rooms to open worldwide by the end of 2027.
