Finance & DevelopmentFinanceCoStar: U.S. Hotel Rooms Construction Grows Year Over Year

CoStar: U.S. Hotel Rooms Construction Grows Year Over Year

WASHINGTON—The volume of U.S. hotel rooms under construction grew year over year for the first time since June 2023, according to CoStar’s March 2024 data.

U.S. Hotel Pipeline
March 2024

Percentage change from March 2023
In construction: 156,525 rooms (up 1.5 percent)
Final planning: 263,316 rooms (up 9.8 percent)
Planning: 324,522 rooms (up 39.5 percent)

“While the number of rooms in construction has grown, that figure remains below what was seen prior to the pandemic,” said Isaac Collazo, STR’s VP, analytics. “However, month-over-month percentage changes have largely improved since October 2023 and the 156,000 rooms in that final phase of the pipeline is the highest since November of last year. These increases point to the rebalancing of the industry and the likelihood that developers are settling in for the long haul with present-day interest rates.”

Upper-midscale and upscale projects continue to dominate the pipeline, accounting for more than half of the in-construction room count.

Chain Scale Segments (percentage of existing supply, in-construction room count)
  1. Luxury (4.3 percent, 6,466 rooms)
  2. Upper Upscale (2.8 percent, 19,766 rooms)
  3. Upscale (4.0 percent, 35,912 rooms)
  4. Upper Midscale (3.6 percent, 42,605 rooms)
  5. Midscale (2.9 percent, 14,733 rooms)
  6. Economy (1.2 percent, 7,946 rooms)