Extended-stay properties made up approximately 40 percent of projects in the U.S. hotel construction pipeline at the end of the third quarter, according to a new report by Lodging Econometrics.
The total number of hotel projects in all phases of the U.S. pipeline stood at more than 5,900 projects totaling nearly 693,000 rooms, down about 5 percent from project totals reported in Q3 2025.
Among extended-stay projects, middle-tier properties accounted for 1,628 projects, nearly 70 percent of the extended-stay pipeline and 28 percent of the overall U.S. pipeline. Upper-tier properties accounted for 24 percent of the extended-stay pipeline, and lower-tier properties accounted for 6 percent.
The luxury segment reached record-high project and room counts in the third quarter, according to Lodging Econometrics, with more than 100 projects and about 25,775 rooms, up 14 percent by projects year over year. The upper upscale segment also hit a record project count, at 375 projects with more than 66,000 rooms, up 3 percent by projects year over year. Upper midscale still has the largest project total in the pipeline, with more than 2,200 projects.
Dallas again led the U.S. as the city with the most hotels in the pipeline during the third quarter, with 184 projects and more than 23,600 rooms. It marked the 21st straight quarter in which the Texas city led all others in pipeline count.
The markets with the next largest pipelines were Dallas was followed by Atlanta (154 projects totaling 16,900 rooms), Nashville (122 projects totaling 16,200 rooms) and Austin (112 projects totaling 13,200 rooms). Dallas also has the most properties currently under construction, according to Lodging Econometrics, with 36 totaling about 3,760 rooms.
Lodging Econometrics projects U.S. hotel supply growth rates of 1.2 percent in 2026, 1.3 percent in 2027 and 1.5 percent in 2028.