Dive Brief:
- In the second quarter of 2026, there were 5,975 hotel projects, or 703,001 rooms, in the total U.S. hotel construction pipeline, according to Lodging Econometrics’ Q2 2026 U.S. Construction Pipeline Trend Report. Project and room counts were down approximately 4.9% and 4.6%, respectively, compared to the prior year quarter.
- Despite the overall decline, new project announcements were up 18% year over year in the quarter, while construction starts on hotel projects were up 14% year over year, per the report. The luxury and upper upscale segments also reached record pipelines.
- Looking ahead, Lodging Econometrics forecasts 661 hotels will open in 2026, representing 1.3% year-over-year growth. Lodging Econometrics expects openings growth to accelerate in 2027 and 2028.
Dive Insight:
In the second quarter of 2026, there were 1,081 hotel projects presently under construction across the U.S., while 2,147 projects were slated to start construction within the next 12 months. Additionally, there were 2,747 projects in the early planning stage. Across every pipeline phase, hotel projects were down year over year.
Pipeline declines also occurred in the first quarter of 2026, in part due to accelerated openings ahead of major events, including the FIFA World Cup, Bruce Ford, senior vice president and director of global business development at Lodging Econometrics, told Hotel Dive in April.
In the second quarter, the upper midscale and upscale segments led the total U.S. hotel construction pipeline with the greatest number of projects and rooms, according to Lodging Econometrics. The upper midscale segment had 2,225 projects, or 214,027 rooms, in the pipeline, while the upscale segment had 1,282 projects, or 159,252 rooms. Together, the two chain scales comprised 59% of all projects and 53% of all rooms in the total pipeline.
The luxury segment saw notable pipeline growth in the second quarter, with project and room count increasing 12% and 21%, respectively, year over year. The luxury pipeline reached a record 103 projects and 25,496 rooms during the quarter. The upper upscale segment also reached a record pipeline of 367 projects, or 65,021 rooms.
Conversions saw solid pipeline growth as well, with projects increasing 15% year over year to a record 1,567 hotels. In the first quarter of the year, conversions overwhelmingly drove portfolio gains for hotel companies.
Dallas led all other U.S. markets with the largest hotel construction pipeline in Q2, totaling 183 projects. Atlanta (157 projects); Nashville, Tennessee (122); Austin, Texas (116); and Phoenix (115) rounded out the top five. Dallas also had the most projects presently under construction, scheduled to start construction in the next 12 months and in the early planning stages during the quarter, per Lodging Econometrics.
During the first and second quarters of 2026, 277 hotels opened across all markets, per the report. Lodging Econometrics forecasts an additional 384 hotels will open for the remainder of the year, which would result in full-year openings growth. Phoenix currently leads the 2026 year-end new hotel openings forecast with 26 projects, per Lodging Econometrics.
The company estimates 738 hotels will open in 2027 and 832 hotels will open in 2028, reflecting 1.4% and 1.5% year-over-year growth, respectively. Dallas is expected to lead hotel openings in 2027, while Atlanta is slated to take the cake in 2028.
