The volume of US hotel rooms under construction decreased year over year for a sixth consecutive month, according to CoStar’s June 2025 data.
U.S. Hotel Pipeline
June 2025 (percentage change from June 2024)
- In construction: 138,922 rooms (-11.9%)
- Final Planning: 266,276 rooms (-0.1%)
- Planning: 349,802 rooms (+4.8%)
“With hotel demand trending downward, unrelenting economic uncertainty, and rising construction costs, it’s not surprising that the number of hotel rooms under construction is at a 20-quarter low,” said Isaac Collazo, STR’s senior director of analytics.
“More than half of all rooms under development are in the Southern region and mostly outside of the Top 25 Markets. Like most of the pipeline, these rooms are mostly in the two planning phases, and many will likely not be built in the near future.”
US pipeline June 2025
Chain Scale Segments (% of existing supply, in-construction room count)
- Luxury (4.1% / 6,443 rooms)
- Upper Upscale (2.3% / 16,336 rooms)
- Upscale (3.7% / 34,047 rooms)
- Upper Midscale (3.1% / 36,718 rooms)
- Midscale (2.5% / 12,715 rooms)
- Economy (0.9% / 5,830 rooms)
“Most rooms under construction continue to be centered in the middle tier (Upscale and Upper Upscale),” said Collazo. “While we expect the number of these projects to decrease, they will remain the focus of new development for the foreseeable future.”
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