- According to CoStar’s March 2025 data, the number of hotel rooms under construction in the U.S. decreased for the third consecutive month.
- Despite this decline, the hotel pipeline remains strong with 6,500 hotels and 777,000 rooms in various planning phases.
The U.S. hotel industry saw a decline in the volume of rooms under construction for the third consecutive month, according to CoStar’s March 2025 data. This decline is primarily attributed to increased uncertainty and a potential rise in construction costs. The data showed a 7.5% decrease in rooms under construction compared to March 2024.
However, the hotel pipeline remains robust, with more rooms in the final planning and planning phases. Final planning rooms saw a 3.7% increase, while rooms in the planning phase rose by 10.9%. The pipeline, including planning phases, comprises 6,500 hotels and 777,000 rooms.
The decrease in construction was most notable in the Upper Midscale segment, accounting for more than a third of the difference in room count year over year. Despite the decrease, Upper Midscale remains the largest segment of hotels and rooms currently under construction.
