The number of U.S. hotel projects in development in the first quarter showed "sustained" activity across the country, according to a new report by Lodging Econometrics.
The total number of hotel projects in all phases of the U.S. pipeline at the end of the first quarter stood at 6,020 projects totaling 705,825 rooms, down about 6 percent from project totals reported in Q1 2025.
Projects under construction totaled approximately 1,070 comprising more than 132,000 rooms. About 2,160 projects with nearly 250,000 rooms are scheduled to start construction within the next 12 months, while projects in the early planning stage stand at 2,785 projects and more than 324,300 rooms.
The luxury segment achieved a record-high project count in the first quarter, reaching more than 102 projects with more than 25,500 rooms, up 16 percent by projects and 23 percent by rooms year over year. Upscale, upper midscale and midscale accounted for 75 percent of projects in the U.S. construction pipeline, and each is expected to record its highest new hotel opening total since 2022.
Hotel conversions remain "strong," according to Lodging Econometrics, with more than 1,460 projects and nearly 142,00 rooms, up 3 percent and 4 percent year over year, respectively. Combined conversion and renovation activity hit nearly 2,050 projects and more than 258,600 rooms.
Dallas continued to lead all U.S. markets with more than 180 projects and more than 22,800 rooms in its hotel construction pipeline by the end of the first quarter. It marked the 19th straight quarter in which the Texas city led all others in pipeline count.
Dallas was followed by Atlanta (158 projects totaling 17,500 rooms), Phoenix (123 projects totaling 16,100 rooms) and Nashville (120 projects totaling 16,740 rooms) as the cities with the most projects in the pipeline.
Lodging Econometrics projects year-over-year U.S. hotel supply growth rates of 1.4 percent in 2026 and 1.4 percent for 2027.