Dive Brief:
- During the third quarter of 2026, there were 5,901 projects, or 692,999 rooms, in the total U.S. hotel construction pipeline, according to a new report from Lodging Econometrics. Hotel projects were down 4.9% compared to the prior-year quarter.
- At the close of Q3, there were 1,094 hotel projects under construction, 2,175 projects scheduled to start construction in the next 12 months and 2,632 projects in the early planning stage, per the report. Construction starts for the quarter totaled 152 projects, while 195 new projects were announced during the period.
- Extended stay hotels accounted for 40% of projects in the total construction pipeline in Q3, per the report. Meanwhile, projects in both the luxury and upper upscale segments reached record-high counts. On a market-to-market basis, Dallas led all other U.S. cities with the largest pipeline, totaling 184 projects, or 23,646 rooms.
Dive Insight:
Following Dallas, the U.S. markets with the largest pipelines were Atlanta with 154 projects; Nashville, Tennessee, with 122 projects; Austin, Texas, with 112 projects; and California’s Inland Empire with 110 projects, per the report.
Extended stay hotels dominated the total pipeline in Q3, standing at 2,352 projects, or 236,219 rooms, the report detailed. Middle-tier extended stay brands made up the majority of the segment, representing 1,628 projects, or 152,287 rooms.
Of the extended stay hotels in the pipeline, 424 projects were under construction, 1,006 projects were scheduled to start construction in the next 12 months and 922 projects were in the early planning stage.
Across segments, the upper midscale chain scale had the largest project count (2,206 hotels) in the pipeline in Q3, and luxury and upper upscale hotels saw significant year-over-year pipeline growth.
There were a record 108 luxury hotel projects, or 25,776 rooms, in the total pipeline in Q3, up 14% by projects and 19% by rooms year over year, per the report. Meanwhile, the upper upscale pipeline stood at a record 375 projects, up 3% year over year.
Brand conversions also increased year over year during the quarter, up 3%, to 1,516 projects, or 146,544 rooms, per the report.
At The Lodging Conference in Phoenix earlier this month, hotel development executives said hotel conversions, as well as the extended stay category, remain an important source of growth for brands.
Through the third quarter, 407 new hotels opened in the U.S. so far this year, and an additional 191 hotels are expected to open by year-end, per the report. That would bring the total number of U.S. hotel openings for full-year 2026 to 598, representing a 1.2% year-over-year increase in supply.
Among other markets, Phoenix saw the most hotel openings (six) in Q3, followed by Dallas, Inland Empire and Atlanta, all of which had four openings.
Looking ahead, Lodging Econometrics’ analysts project that 668 new hotels will open across the U.S. in 2027, and 775 new hotels will open in 2028, representing year-over-year supply growth of 1.3% and 1.5%, respectively, per the report.
