The number of hotel projects under construction in the United States in the third quarter "saw a marginal decline" year over year, 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 third quarter "remained relatively unchanged" from prior-year levels at about 6,200 properties totaling 728,000 rooms, according to Lodging Econometrics. That pace has slowed throughout 2025 compared with 5 percent year over year growth in the first quarter and 3 percent in the second.
Third-quarter hotel projects set to begin construction in the next 12 months increased "modestly" year over year to more than 2,230 with 259,000 rooms, according to the company.
The upper-midscale tier has the largest share of the overall pipeline by far, with about 2,280 projects and 219,000 rooms, well ahead of the 1,380 hotels with 172,000 rooms that make up the upscale share of the pipeline, which is second largest. Extended-stay properties comprise 40 percent of all hotels in the overall pipeline and 34 percent of the rooms, according to the company.
Dallas yet again in the third quarter led the U.S. as the city with the most hotels in the pipeline, with 197 projects and more than 24,300 rooms. It's the 17th straight quarter in which the Texas city has led all others in pipeline count.
Dallas was followed by Atlanta (160 projects totaling 18,200 rooms), Nashville (130 projects totaling 17,200 rooms) and Phoenix (125 projects totaling 16,500 rooms) atop the third-quarter pipeline list. Phoenix actually has the most properties currently under construction, according to Lodging Econometrics, with 36 totaling 5,000 rooms.
Lodging Econometrics now projects year-over-year U.S. hotel supply growth rates of 1.4 percent in 2025, 1.5 percent in 2026 and 1.6 percent in 2027.