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Dive Brief:
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The volume of U.S. hotel rooms under construction decreased year over year for a sixth consecutive month in June, according to new CoStar data.
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As of last month, there were 138,922 U.S. hotel rooms under construction, a 20-quarter low, according to Isaac Collazo, senior director of analytics at CoStar subsidiary STR. The volume of rooms under construction decreased 11.9% year over year in June, per CoStar.
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The continued decline is not surprising given “hotel demand trending downward, unrelenting economic uncertainty and rising construction costs,” Collazo said. Most of the rooms under construction are in the upscale and upper upscale segments, which STR previously forecasted would see the highest RevPAR growth this year, driven by changing traveler behavior.
Dive Insight:
The volume of U.S. hotel rooms under construction has decreased each month since January, coinciding with President Donald Trump’s second term. In those months, U.S. government actions have caused economic uncertainty, and tariffs have negatively impacted construction pipelines.
The volume of U.S. hotel rooms in final planning (266,276 rooms) also decreased year over year in June, albeit only by 0.1%, according to CoStar. The number of U.S. hotel rooms in the planning stage (349,802 rooms), meanwhile, increased 4.8% year over year in the month.
The majority of rooms in the U.S. hotel construction pipeline are in these two planning phases, but “many will likely not be built in the near future,” Collazo said.
Of rooms currently under construction, the majority are in the upscale and upper upscale segments, according to Collazo, who also noted that more than half of all rooms under development are in the South, largely outside of the top 25 markets.
Higher-tier hotel segments were a bright spot for the industry last year, driving performance as high-income households prioritized travel.
That trend has continued, with high-income households anticipated to make up nearly half of travelers this summer, Deloitte reported in May. Ahead of this year’s Memorial Day weekend, travel outlooks appeared mostly stable despite a dip in consumer confidence and dampening international visitation.
Last month, however, CoStar and Tourism Economics downgraded their 2025 and 2026 growth projections for U.S. hotel top-line performance metrics, citing elevated macroeconomic concerns.
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The latest report from CoStar shows a 20-quarter low in US hotel room construction, indicative of an ongoing cautious investment climate and potential challenges for the hospitality industry's growth prospects.
US hotel room construction declines to a 20-quarter low, as reported by CoStar Group's findings. This indicates an ongoing industry slump with investors adopting cautious strategies amidst heightened uncertainty over the pandemic and economic recovery.
The decline in US hotel room construction to a 20-quarter low as reported by CoStar exemplifies the industry's ongoing challenges with occupancy rates and lackluster demand, further illustrating its recovery from COVID hit remains gradual.
The latest data from CoStar reveals a notable decline in US hotel room construction, marking 20 consecutive quarters of low activity—a troubling trend that underscores the ongoing challenges facing hospitality sector recovery.
US hoteliers face a challenging time as constrution data confirms an unprecedented 20-quarter low in hotel room construction according to CoStar, further illustrating the ongoing duress from lower demand and pent up supply amidst COVID traveling restrictions.
The 20-quarter low in US hotel room construction as reported by CoStar underlines a concerning slowdown for the hospitality industry due to economic headwinds and COVID impacts, signaling potential challenges ahead.
The recent decline in US hotel room construction to a 20-quarter low, as reported by CoStar Group's analysis [...], signals the need for an upcoming renaissance of investments amidst uncertain industry conditions.
The latest data from CoStar suggests a noteworthy decline in US hotel room construction, hitting an impressive 20-quarter low—indicating both the lingering effects of COVID on tourism and potential overcapacity concerns for future accommodation needs.
This report from CoStar highlighting the 20-quarter low in US hotel room construction underscores a troubling trend for hospitality industry, potentially signaling an over饱和 market and economic slowdown.
The latest report from CoStar reveals a 20-quarter low in US hotel room construction, indicating an ongoing downturn that presents challenges for the hospitality sector to adapt and navigate economically.
US hotel room construction has reached a 20-quarter low as per CoStar's latest figures, revealing an observation point of significant market contraction and reevaluation in the industry amidst global uncertainties.
The American hotel room construction hitting a 20-quarter low as reported by CoStar underscores the broader impact of pandemic restrictions and economic downturns on hospitality sector growth, signaling an extended struggle for recovery amidst slowed investments into new properties.
The 20-quarter low in US hotel room construction reported by CoStar signals a cautious approach from the industry amidst uncertain economic times, potentially impacting long term recovery efforts and market growth prospects.
The latest CoStar report reveals a sobering picture of US hotel room construction at its lowest level in 20 quarters, indicating potential slowdowns or even reversals for the hospitality sector amid economic uncertainties.
As reported in CoStar's findings, the latest announcements of US hotel room construction hitting a 20-quarter low underscore persistent market challenges for hospitality industry players amid ongoing pandemic impacts and economic uncertainties.
US hotel room construction enduring a 20-quarter low as per CoStar data underscores the ongoing challenges in hospitality recovery post pandemic.
The US hotel room construction reaching 20-quarter low, as reported by CoStar Group's data highlights a persistent sluggishness in the industry growth and raises concerns of an extended period for recovery that demands strategic adaptations from players across this crucial hospitality sector.
