Extended-Stay Hotels Dominate U.S. Construction Pipeline as 2025 Sees Steady Growth

The U.S. hotel construction pipeline remains stable with a significant focus on extended-stay projects, which constitute 40% of total developments as of Q3 2025, according to Lodging Econometrics.

The U.S. hotel construction pipeline has shown little change year-over-year, according to the Q3 2025 U.S. Hotel Construction Pipeline Trend Report by Lodging Econometrics (LE). The pipeline currently comprises 6,205 projects, equating to 728,416 rooms, with a slight 1% increase in room count compared to the previous year.

Stages of Construction

As of the third quarter, there are 1,118 projects with 137,620 rooms under construction. Projects slated to begin construction within the next 12 months total 2,234, accounting for 258,973 rooms. Early planning stages include 2,853 projects, translating to 331,823 rooms. The report indicates a modest increase in both the next 12-month start and early planning stages, while the number of projects currently under construction has slightly declined. New project announcements for the quarter reached 230 projects, comprising 28,951 rooms. Additionally, hotel renovations across the U.S. are underway with 566 projects, totaling 123,142 rooms.

Chain Scale Analysis

The upper midscale chain scale leads the U.S. pipeline with 2,279 projects and 219,385 rooms. The upscale chain scale follows with 1,383 projects and 172,238 rooms. Together, these two segments represent 59% of the total projects in the pipeline. The midscale segment includes 947 projects and 78,956 rooms, marking a 2% year-over-year increase in both projects and rooms. Collectively, the upper midscale, upscale, and midscale segments account for 65% of all projects in the pipeline.

Extended-Stay Hotel Focus

Extended-stay hotels remain a significant part of the U.S. hotel construction pipeline, with 2,468 projects and 250,754 rooms, representing 40% of all projects and 34% of all rooms. The middle tier of extended-stay hotels is the largest segment, with 1,648 projects and 154,499 rooms, up 3% year over year. The upper tier comprises 653 projects and 77,019 rooms, while the lower tier includes 167 projects and 19,236 rooms. Within this segment, 431 projects with 45,542 rooms are currently under construction. Projects scheduled to start within the next 12 months total 983, with 102,064 rooms, and those in early planning stages account for 1,054 projects with 103,148 rooms.

Brand Conversions and Renovations

Brand conversion activities have reached record levels, closing the quarter with 1,477 projects and 148,035 rooms, marking an 18% increase in projects and a 22% rise in rooms year-over-year. The combined renovation and brand conversion pipeline in the U.S. stands at 2,043 projects, totaling 271,177 rooms, reflecting a 4% increase in projects and a 3% increase in rooms compared to the previous year.

Forecast for New Hotel Openings

In the first three quarters of 2025, 490 new hotels with 57,479 rooms have opened in the U.S. An additional 202 projects, comprising 22,368 rooms, are expected to open by the end of 2025. Lodging Econometrics projects that 2025 will conclude with 692 new hotels and 79,847 rooms, indicating a growth rate of 1.4%. Looking ahead, LE forecasts the opening of 754 new hotels with 83,118 rooms in 2026, representing a 1.5% growth rate. For 2027, the projection is for 864 new hotels with 91,571 rooms, achieving a 1.6% growth rate.