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 (-12.3 percent)
- Final Planning: 258,836 rooms (-3.5 percent)
- Planning: 327,304 rooms (-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,” Isaac Collazo, STR’s senior director of analytics, said in a statement. “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 (percent of existing supply, in-construction room count)
September 2025 (percentage change from September 2024)
- Luxury (3.8 percent / 5,911 rooms)
- Upper Upscale (2.1 percent / 15,292 rooms)
- Upscale (3.6 percent / 33,376 rooms)
- Upper Midscale (3.3 percent / 39,075 rooms)
- Midscale (2.4 percent / 12,746 rooms)
- Economy (0.7 percent / 4,559 rooms)
Hotel pipeline expands in Europe as all other regions decline
At the end of the third quarter, Europe was the only world region to show an increase in hotel construction and overall pipeline activity, according to CoStar's September 2025 pipeline data.
Europe
- In construction: 171,589 rooms (+5.2 percent)
- Final planning: 71,502 rooms (-18.5 percent)
- Planning: 185,254 rooms (+14.2 percent)
- Total under contract: 428,345 (+3.7 percent)
The United Kingdom leads Europe in total rooms in construction (24,540), closely followed by Germany (22,622).
Americas
- In construction: 190,842 rooms (-8.8 percent)
- Final planning: 292,538 rooms (-4.1 percent)
- Planning: 390,345 rooms (+0.8 percent)
- Total under contractt: 873,725 (-3.1 percent)
The U.S. (138,922) holds the majority of rooms in construction in the region. After the U.S., Mexico (14,290), Canada (8,988) and Brazil (5,481) show the highest number of rooms in construction.
Asia Pacific
- In construction: 492,663 rooms (-3.2 percent)
- Final planning: 42,911 rooms (-22.6 percent)
- Planning: 415,446 rooms (+6.6 percent)
- Total under contract: 951,020 (-0.3 percent)
Among countries in the region, China (280,577) leads in construction activity, followed by India (41,711) and Vietnam (39,078).
Middle East & Africa
- In construction: 99,895 rooms (-9.4 percent)
- Final planning: 19,396 rooms (-37.3 percent)
- Planning: 94,485 rooms (+10.9 percent)
- Total under contract: 213,776 (-5.6 percent)
Most of the region’s pipeline activity is focused in the Middle East. Saudi Arabia (44,771) and the United Arab Emirates (14,685) have the most rooms in construction.