US pipeline steady as conversions hit record

NATIONAL REPORT — U.S. hotel construction remained steady in Q4 with a total pipeline of 6,146 projects and 720,089 rooms, according to Lodging Econometrics, with record growth in conversions and renovations driving much of that activity.

Projects currently under construction total 1,088 projects and 134,380 rooms. Looking ahead, 2,175 projects and 253,750 rooms are scheduled to start construction within the next 12 months. Projects in the early planning stage still account for the majority of the active pipeline, with 2,883 projects and 331,959 rooms as of Q4.

Brand conversions in the pipeline experienced notable growth in Q4, reaching a record high of 1,497 projects and 148,981 rooms. This marks a 12% year-over-year increase in projects and 16% YOY growth in rooms. Hotel renovations in the U.S. remained relatively unchanged, totaling 621 projects and 129,647 rooms, but combined, renovation and conversion projects represent a significant portion of hotel development activity, with a new record high of 2,118 projects and 278,628 rooms.

Upper midscale hotels continue to lead the pipeline, accounting for 2,275 projects and 218,526 rooms, while upscale hotels follow with 1,336 projects and 167,316 rooms. The midscale segment recorded 956 projects and 80,260 rooms. The luxury segment now sits at a record 95 projects and 22,045 rooms.

In Q4, 285 projects and 32,358 rooms new projects were announced. Construction starts throughout the year stood at 668 projects and 78,530 rooms, while 148 projects and 17,623 rooms broke ground in Q4.

New hotel openings in 2025 reached 640 with 74,079 rooms in the U.S., expanding the nation’s hotel supply by 1.3% at year-end. Looking ahead, Lodging Econometrics forecasts continued growth, with 708 new hotels and 80,034 rooms expected to open in 2026, representing a 1.4% increase in supply. Furthermore, LE analysts anticipate accelerated growth in new hotel openings again in 2027, with 824 hotels and 88,095 rooms scheduled to open by year-end, resulting in a 1.5% increase.