Profiling the Development Pipeline: High Interest Rates and Labor Costs Continue to Impact Construction Activity
🏢 As of November 2024, the U.S. has 1,264 properties with 151,129 guestrooms under construction, constituting 2.6% of existing hotel room inventory. This is the lowest since August 2022. Upper-midscale and upscale categories dominate the new builds at 50.7% of rooms. Upper-upscale and luxury categories are at 10.7% and 5.3% respectively, while midscale and economy projects account for 15%. Nashville's construction pipeline represents 7.2% of its market's existing supply. A significant number of new rooms, totaling 190,464, are slated to open in 2026, exceeding the 105,957 in 2025 and 106,070 in 2027.
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