At the midway point of 2025, the total U.S. hotel construction pipeline was up year over year, with upper-tier chain scales and extended stay properties driving growth, according to Lodging Econometrics’ Q2 2025 U.S. Hotel Construction Pipeline Trend Report.
Standing at 6,280 projects, or 737,036 rooms, the hotel construction pipeline was up 3% year over year in Q2, the report detailed. The pipeline was down sequentially from Q1, though, when it comprised 6,376 projects, or 749,561 rooms.
At the close of Q2, there were 1,120 projects under construction and 2,263 projects slated to start construction within the next 12 months, with both categories down slightly year over year, per Lodging Econometrics. Meanwhile, the number of projects in the early planning stage (2,897) was up 13% year over year at the quarter’s end.
Upper-tier segments, extended stay dominate
Upper-tier chain scales dominated the U.S. hotel pipeline in the second quarter, per Lodging Econometrics. Upper midscale had the highest project count (2,282) of all chain scales in its pipeline.
The upscale segment had the second largest pipeline in Q2, totaling 1,427 projects, or 177,756 rooms. Together, the upscale and upper midscale segments comprised 59% of all projects in the total pipeline in the quarter, the report detailed.
Lodging Econometrics also noted that the upper upscale project pipeline experienced notable growth in Q2, increasing 11% year over year to 360 projects. Upper-tier categories had a leg up over other chain scales in the first quarter this year as well.
Meanwhile, extended stay brands continued to remain popular with developers, accounting for 38% of the projects under construction, 43% of those scheduled to begin within the next 12 months and 37% of projects in the early planning stage, according to Lodging Econometrics.
The total extended stay pipeline stood at 2,473 projects, representing 39% of the total pipeline and increasing 3% year over year.
Earlier this year, Choice Hotels International CEO Patrick Pacious said extended stay and upscale limited service are the two segments with the highest developer and guest demand.
Hotel markets to watch
Dallas had the largest hotel construction pipeline of any U.S. market at the close of the second quarter, with 199 projects and a record 24,497 rooms, according to Lodging Economics. Dallas’ Q2 rooms pipeline was only one room larger than in Q1, though, when it comprised 24,496 rooms. And the city’s Q2 project pipeline was slightly down quarter over quarter.
Following Dallas for the largest pipelines nationwide were Atlanta with 165 projects; Nashville, Tennessee, with 128 projects; Austin, Texas, with a record 125 projects; and Phoenix with 123 projects. All of these markets showed year-over-year pipeline growth in Q2, though Austin expanded most substantially with a 10% increase in projects.
Some 329 new hotels opened in the first half of the year, with Atlanta leading other U.S. markets for the most hotel projects to open (11) during the period, per the report. Dallas saw the second-most hotel projects open (10), followed by New York City (9), Tampa (7) and Orlando, Florida (6).
An additional 406 hotels are slated to open across the U.S. by year-end, bringing the total number of hotels opening in 2025 to 735, representing 1.5% year-over-year growth. New York City is forecast to open another 23 new hotels in the second half of the year, the most of any market, per Lodging Econometrics.
Notable hotels opening this year in New York City include Waldorf Astoria New York and W New York - Union Square.
Looking ahead, Lodging Econometrics projects 823 new U.S. hotels will open nationwide in 2026, increasing 1.6% year over year, and 902 hotels will open in 2027, representing 1.7% annual supply growth that year.
