US Hotel Construction Pipeline Declines in Q2 Overall, Luxury and Upper-Upscale Segments Grow Against Trend
According to the Q2 2026 US Construction Pipeline Trend Report released by Lodging Econometrics, the total US hotel construction pipeline stood at 5,975 projects and 703,001 rooms, down approximately 4.9% and 4.6% year-over-year, respectively. Despite the overall decline, new project announcements increased by 18% year-over-year, and construction starts grew by 14%, with the luxury and upper-upscale segments reaching record pipeline highs. The report forecasts 661 hotel openings in 2026, up 1.3% year-over-year, and anticipates accelerated opening growth in 2027 and 2028.
Key Takeaways
- In Q2 2026, the total U.S. hotel construction pipeline was5,975 projects with 703,001 rooms(Source: Lodging Econometrics Q2 2026 U.S. Construction Pipeline Trend Report). Project and room counts weredown approximately 4.9% and 4.6%, respectively, compared tothe same period last year.
- Despite the overall decline, new project announcements increased 18% year-over-year in the quarter, and hotel construction starts rose 14%. The luxury and upper upscale segments reached record-high pipeline levels.
- Looking ahead, Lodging Econometrics forecasts 661 hotel openings in 2026, a 1.3% increase year-over-year. The firm expects even faster opening growth in 2027 and 2028.
Deeper Dive
In Q2 2026, there were 1,081 hotels under construction in the U.S., 2,147 projects scheduled to start within the next 12 months, and 2,747 projects in early planning. Hotel project counts declined year-over-year across all stages of the pipeline.
The pipeline decline also occurred in Q1 2026, partly due to accelerated openings ahead of major events such as theFIFA World Cup, according to Bruce Ford, senior vice president and global director of business development at Lodging Econometrics, in an April interview with Hotel Dive.
In Q2, the upper midscale and upscale segments dominated the U.S. hotel construction pipeline, leading all segments in both project and room counts. The upper midscale segment had 2,225 projects with 214,027 rooms; the upscale segment had 1,282 projects with 159,252 rooms. Together, they accounted for 59% of total pipeline projects and 53% of total rooms.
The luxury segmentsaw significant pipeline growth in Q2, with project and room counts up 12% and 21% year-over-year, respectively. The luxury pipeline reached a record 103 projects with 25,496 rooms in the quarter. The upper upscale segment also set a pipeline record, reaching 367 projects with 65,021 rooms.
Conversion projects also showed steady growth, with project counts up 15% year-over-year to a record 1,567 hotels. In Q1 2026,conversions significantly drove portfolio growth for hotel companies.。
By market,Dallas led the nation with 183 pipeline projects. Atlanta (157 projects), Nashville, Tennessee (122), Austin, Texas (116), and Phoenix (115) rounded out the top five. According to Lodging Econometrics, Dallas led the nation in under-construction projects, projects scheduled to start in the next 12 months, and projects in early planning.
The report showed that 277 hotels opened nationwide in Q1 and Q2 of 2026.Hotel openings. Lodging Econometrics forecasts an additional 384 hotel openings in the remainder of the year, which would drive growth in total openings for the year. According to the firm's forecast, Phoenix leads the list of projected new openings by the end of 2026 with 26 new openings.
The firm estimates 738 hotel openings in 2027 and 832 in 2028, with year-over-year growth rates of 1.4% and 1.5%, respectively. Dallas is expected to lead hotel openings in 2027, while Atlanta is projected to take the lead in 2028.