WASHINGTON—The volume of U.S. hotel rooms under construction reached its highest level in 16 months, according to CoStar’s latest June 2024 data.
U.S. Hotel Pipeline
June 2024
Percentage change from June 2023
In construction: 157,713 rooms (up 5.5 percent)
Final Planning: 266,619 rooms (up 9.8 percent)
Planning: 333,827 rooms (up 38.7 percent)
“The number of rooms in construction has grown year over year for four consecutive months,” said Isaac Collazo, STR’s VP, analytics. “While upscale and upper midscale continue to dominate, accounting for about 50 percent of all rooms in the final phase of the pipeline, the pace of activity in these segments has slowed compared to last year. Midscale and economy have shown the most growth, up 42 percent and 34 percent, respectively, with newer brands and extended-stay accounting for most of the new construction across the midscale segment.”
Chain Scale Segments (Percent of existing supply, in-construction room count)
- Luxury (4.5 percent, 6,760 rooms)
- Upper Upscale (2.7 percent, 19,023 rooms)
- Upscale (4.0 percent, 36,806 rooms)
- Upper Midscale (3.5 percent, 40,954 rooms)
- Midscale (2.9 percent, 14,900 rooms)
- Economy (1.3 percent, 8,384 rooms)
