Dive Brief:
- The total U.S. hotel construction pipeline was 6,020 projects, or 705,825 rooms, in the first quarter of 2026, according to Lodging Econometrics’ Q1 2026 U.S. Construction Pipeline Trend Report. Both project and room counts were down about 5% compared to Q1 2025.
- Despite the decline, the luxury segment reached a record number of 102 hotel projects during the quarter, up 16% from a year earlier, according to Lodging Econometrics. Hotel conversions also maintained a constant portfolio of 1,461 projects, 3% more than the previous year.
- Dallas led all other U.S. markets with the largest hotel construction pipeline in the first quarter, with a total of 184 projects, or 22,861 rooms, the report said. Meanwhile, Phoenix is expected to have the most hotel openings in 2026.
Diving knowledge:
In the first quarter, the number of hotel projects under construction (1,071) decreased by approximately 7% year-on-year. The number of hotel projects scheduled to begin construction in the next 12 months (2,164) as well as those in the early planning stages (2,785) also decreased compared to the first quarter of 2025.
The pipeline has been shrinking year-over-year in part due to many projects being completed and opening ahead of big events like the FIFA World Cup, Bruce Ford, senior vice president and director of global business development at Lodging Econometrics, told Hotel Dive.
Also, due to the cost of debt in 2025, it was not feasible for many hotel players to sign new project deals, Ford said. Growing financial pressures led a significant portion of hoteliers to delay or cancel development and renovation projects last year, a September report from the American Hotel & Lodging Association found. However, debt markets are expected to improve throughout 2026, according to a February JLL report.
Still, hotel players who have the capital are spending it, Ford said, pointing to the growing luxury pipeline. Several hotel companies have notable luxury projects underway in the US, including Marriott International and Hilton.
According to the report, luxury, mid-range and mid-range chain ladders accounted for 75% of projects in the total US construction pipeline in the first quarter of this year.
While Dallas had the largest total hotel construction backlog in the quarter, its project backlog was down about 9% year-over-year. Atlanta followed Dallas for the largest pipeline, with 158 projects or 17,524 rooms. Phoenix, Nashville and Austin, Texas rounded out the top five.
The markets with the highest number of projects currently under construction in the first quarter were Dallas with 37, Phoenix with 36 and New York with 26. Phoenix experienced “particularly strong momentum,” with its number of projects under construction up 19% year-over-year in the first quarter, according to Lodging Econometrics. Phoenix also had the most new project announcements (nine) during the quarter.
According to Lodging Econometrics, Phoenix will have the most hotel openings (27) of any other US market this year, followed by New York (21) and Dallas (20).
The organization predicts that a total of 682 new hotels with 77,323 rooms will open in the United States by 2026, representing a 1.4% year-over-year increase in new hotel supply.
