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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 US Construction Pipeline Trend Report. Project and room numbers were down approximately 4.9% and 4.6%, respectively, compared to the prior year quarter.
- Despite the overall decline, new project announcements rose 18% year-on-year in the quarter, while construction starts on hotel projects rose 14% year-on-year, the report said. The premium and luxury segments also hit a record high.
- Looking ahead, Lodging Econometrics predicts that 661 hotels will open in 2026, representing a year-on-year growth of 1.3%. Lodging Econometrics expects opening growth to accelerate in 2027 and 2028.
Diving knowledge:
In the second quarter of 2026, there were 1,081 hotel projects under construction in the US, while 2,147 projects were expected to start construction in the next 12 months. In addition, there were 2,747 projects in the early stages of planning. In all phases of the pipeline, hotel projects declined year-on-year.
The first quarter of 2026 also saw pipeline declines, 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.
According to Lodging Econometrics, in the second quarter, the high-end and upper-middle segments led the total U.S. hotel construction pipeline with the most projects and rooms. The upper midscale segment had 2,225 projects, or 214,027 rooms, in the portfolio, while the luxury segment had 1,282 projects, or 159,252 rooms. Together, the two tiers of the chain comprised 59% of all projects and 53% of all rooms in the total pipeline.
The luxury segment experienced notable portfolio growth in the second quarter, with projects and rooms up 12% and 21%, respectively, year-on-year. The luxury pipeline reached a record 103 projects and 25,496 rooms during the quarter. The upper luxury segment also reached a record portfolio of 367 projects, or 65,021 rooms.
Conversions also saw solid portfolio growth, with projects up 15% year-over-year to a record 1,567 hotels. In the first quarter of the year, conversions overwhelmingly drove hotel portfolio earnings.
Dallas led all other US markets with the largest hotel construction pipeline in the second quarter, with a total of 183 projects. Atlanta (157 projects); Nashville, Tenn. (122); Austin, Texas (116); and Phoenix (115) rounded out the top five. Dallas also had the most projects currently under construction, scheduled to begin construction in the next 12 months and in early planning stages during the quarter, according to Lodging Econometrics.
During the first and second quarters of 2026, 277 hotels opened in all markets, according to the report. Lodging Econometrics predicts that an additional 384 hotels will open during the rest of the year, which would represent growth in openings throughout the year. Phoenix currently leads the year-end 2026 hotel opening forecast with 26 projects, by Lodging Econometrics.
The company estimates that 738 hotels will open in 2027 and 832 hotels will open in 2028, reflecting year-over-year growth of 1.4% and 1.5%, respectively. Dallas is expected to lead hotel openings in 2027, while Atlanta is slated to take the cake in 2028.
