The year-over-year increase in the number of hotel projects under construction in the United States in the second quarter slowed from first-quarter levels, according to a new report by Lodging Econometrics.
The total number of hotel projects in the U.S. pipeline at the end of the second quarter increased by about 3 percent year over year to nearly 6,300, according to the company. That's compared to a 5 percent year-over-year increase in the first quarter. The total number of rooms in the second-quarter pipeline also increased about 3 percent year over year to about 737,000.
The number of hotels under construction and the number of hotels scheduled to begin construction in the next 12 months each declined "slightly" year over year at the end of Q2, according to Lodging Econometrics. The number of hotels in the early planning stage, however, increased 13 percent.
Extended-stay properties account for 38 percent of the projects under construction, 43 percent of the projects scheduled to begin within the next 12 months, and 37 percent of the projects in the early planning stage, according to Lodging Econometrics.
Dallas in the second quarter once again led the U.S. as the city with the most hotels in the pipeline, with 199 projects and nearly 24,500 rooms, according to Lodging Econometrics. The Texas city has led all others in pipeline count since the second quarter of 2021, when New York led.
Dallas was followed by Atlanta, with 165 projects totaling more than 19,000 rooms, Nashville (128 projects with 17,000 rooms) and Austin, Texas, with 125 projects with 14,600 rooms, as the cities with the most hotel projects in the second-quarter pipeline.
Lodging Econometrics projected year-over-year U.S. hotel supply growth rates of 1.5 percent in 2025, 1.6 percent in 2026 and 1.7 percent in 2027.