ARLINGTON, Virginia—The volume of U.S. hotel rooms under construction decreased year over year for a ninth consecutive month, according to CoStar’s September 2025 data.
U.S. Hotel Pipeline
September 2025
Percentage change from September 2024
- In construction: 137,956 rooms (down 12.3 percent)
- Final Planning: 258,836 rooms (down 3.5 percent)
- Planning: 327,304 rooms (down 2.6 percent)
“More than 80,000 rooms below the peak from Q3 2020, construction fell to the lowest point of the past 40 quarters,” said Isaac Collazo, STR’s senior director of analytics. “Uncertainty often leads to inaction, and developers and financial institutions are still waiting for a more favorable environment. Higher building and material costs are also hampering groundbreakings, and we don’t foresee the cycle turning for some time. However, more rooms are under construction now than after the Great Recession—development is down but still happening.”
Chain Scale Segments (Percentage of existing supply, in-construction room count:
September 2025 (percentage change from September 2024)
1. Luxury (3.8 percent / 5,911 rooms)
2. Upper Upscale (2.1 percent / 15,292 rooms)
3. Upscale (3.6 percent / 33,376 rooms)
4. Upper Midscale (3.3 percent / 39,075 rooms)
5. Midscale (2.4 percent / 12,746 rooms)
6. Economy (0.7 percent/ 4,559 rooms)
