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The upcoming Gilmore by AvantStay Hotel in Nashville – Image Credit AvantStay
- According to projections from commercial real estate data provider CoStar, New York City and Nashville are expected to open the most hotel rooms in the US in 2025.
- Despite a decrease in ongoing construction, NYC and Nashville have many rooms in the planning stages, indicating continued investment in these markets.
CoStar’s pipeline data suggests that New York City and Nashville are set to open the highest number of hotel rooms in the United States in 2025. New York is projected to open 5,719 rooms, while Nashville expects to unveil 2,849. Other top markets include San Diego, Dallas, and Phoenix.
These predictions are attributed to the cities’ recent high performance in the hotel industry and the abundance of leisure and business travel they attract. While the current construction of new rooms has decreased compared to 2023, the high number of rooms in the planning stages suggests a significant long-term investment in these markets.
US hotel construction activity was relatively quiet at the end of 2024. High interest rates, restrictive capital and lending standards, and elevated construction costs have kept the construction volume considerably lower than the peak seen in 2019.
The industry anticipates opening nearly 34,000 Upper Midscale rooms in 2025, a segment currently leading in room construction.
Discover more at CoStar.
