Hotel development projects in the U.S. totaled 6,280 at the end of Q2, 2025.
U.S. Hotel Sector Sees Continued Growth in Q2 2025
The U.S. hotel industry experienced a significant boost in the first and second quarters of 2025, as evidenced by the various projects and openings in the pipeline. According to Lodging Econometrics (LE), hotel conversions and renovations accounted for 31% of all projects and 35% of all rooms in the non-new-construction pipeline.
During this period, 329 new hotels with 39,628 rooms opened their doors to guests. The quarter also saw 155 new projects with 17,169 rooms commence construction. New project announcements (NPAs) totaled 237 projects with 27,101 rooms.
The U.S. hotel construction pipeline grew by 3% year-over-year (YOY) in Q2 2025, with a total of 6,280 projects with 737,036 rooms in the pipeline. The upscale chain scale had the second-largest project count in the total U.S. construction pipeline, while the upper midscale chain scale had the highest.
Extended-stay brands accounted for 38% of the projects in the total U.S. construction pipeline. The midscale chain scale showed a 6% increase in projects YOY, and the upper upscale chain scale experienced an 11% increase.
Renovations were also a significant part of Q2 2025, with 592 projects totaling 130,331 rooms. Announced renovations and brand conversions, combined, reached 1,956 projects with 259,495 rooms. Conversions showed strong growth, with 1,364 projects and 129,164 rooms, marking an 11% increase in both projects and rooms YOY.
As for the forecast, LE predicts that 902 projects comprising 96,242 rooms will open in the U.S. in 2027. This forecast indicates a continued supply growth of 1.7% for that year. The LE forecast for the remainder of 2025 includes the opening of another 406 projects with 45,160 rooms, totaling 735 new hotels with 84,788 rooms by year-end.
In addition, 2,897 projects with 338,208 rooms are in the early planning stage as of Q2 2025, and 2,263 projects with 260,052 rooms are scheduled to start construction within the next 12 months. As of Q2 2025, 1,120 projects with 138,776 rooms are under construction.
The year-end 2025 forecast represents a 25% increase over the total number of hotel openings in 2024. This growth indicates a strong and continued recovery of the U.S. hotel industry.
The U.S. hotel business sector is experiencing a robust recovery, evidenced by the significant growth in new hotel openings and projects in Q2 2025. This growth extends beyond construction, with a surge in renovations and conversions across various chain scales within the finance sector, contributing to the industry's momentum.
