flexiblefullpage -
billboard - default
interstitial1 - interstitial
catfish1 - bottom
Currently Reading

The U.S. hotel construction market sees record highs in the first quarter of 2024

Hotel Facilities

The U.S. hotel construction market sees record highs in the first quarter of 2024

More than 6,000 hotel projects are in the works across the nation, an all-time high according to Lodging Econometrics.

By Lodging Econometrics | April 24, 2024
Image by Engin Akyurt from Pixabay

Image by Engin Akyurt from Pixabay

As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.

The details can be seen directly within the stages of the pipeline, which all saw YOY growth in Q1. Presently, there are 1,144 projects comprising 141,336 rooms under construction, marking a 9% increase in projects and a 1% increase in rooms YOY. Projects slated to start construction in the next 12 months total 2,259 projects with 260,968 rooms, reflecting a 10% rise in projects and an 8% increase in rooms YOY. 

Notably, both projects and room counts in the early planning stage increased by 9% YOY, reaching record-high figures of 2,662 projects and 300,686 rooms, respectively. Of all the projects in the pipeline, a little over half of them are concentrated within the upscale, upper-midscale, and midscale chain scales. In Q1, the upper midscale and midscale segments hit record-high project and room counts. The luxury chain scale also reached a record-high project total in Q1.

The latest data from LE also highlights the dominance of extended-stay brands in the pipeline at Q1, a segment that developers have increasingly favored in recent years. These brands now account for 37% of the total projects under construction, 41% of projects scheduled to begin within the next 12 months, and 39% of projects in the early planning stage. Sixty-three percent of the extended stay projects in the pipeline are branded with brands within the middle tier extended stay segment.

Renovation and brand conversion activities in the U.S. have also seen significant growth, reaching record-high combined totals of 2,041 projects and 266,405 rooms. Brand conversions, in particular, have hit a new record-high of 1,235 projects with 114,680 rooms, growing 14% by projects YOY, while announced renovations at Q1 stand at 806 projects and 151,725 rooms. LE analysts anticipate this robust conversion and renovation activity to continue throughout 2024.

In terms of new hotel openings, the first quarter saw the opening of 114 new hotels with 15,506 rooms in the U.S. Over half of these opens, 72 hotels/8,269 rooms, were in suburban locations, and 60 hotels/10,036 rooms (or 53%/65%) of newly opened hotels were located within the top 50 markets. With a record number of projects in early planning and an increasing number of projects scheduled to start in the next 12 months, LE analysts project modest growth in new hotel openings through 2024. 

The LE forecast for the remainder of 2024 includes the opening of another 547 projects with 60,483 rooms, totaling 661 new hotels with 75,989 rooms and representing a 1.3% increase in new hotel supply by year-end. Looking ahead to 2025, LE analysts anticipate an additional 790 new hotels with 85,561 rooms to open in the U.S., resulting in a 1.5% supply increase.

Related Stories

Adaptive Reuse | May 9, 2024

Hotels now account for over one-third of adaptive reuse projects

For the first time ever, hotel to apartment conversion projects have overtaken office-to-residential conversions.

Adaptive Reuse | Apr 29, 2024

6 characteristics of a successful adaptive reuse conversion

In the continuous battle against housing shortages and the surplus of vacant buildings, developers are turning their attention to the viability of adaptive reuse for their properties.

Mixed-Use | Apr 23, 2024

A sports entertainment district is approved for downtown Orlando

This $500 million mixed-use development will take up nearly nine blocks.

Hotel Facilities | Apr 17, 2024

Will the surge in hotel construction carry resorts with it?

The resort corner of the hospitality sector has been a bit slower to expand than the whole for the past few years. But don’t tell that to Bill Wilhelm, President of R.D. Olson Construction.

Sponsored | Hotel Facilities | Apr 8, 2024

The Rise of Mobile Keys in Hospitality

Unlocking the future of hospitality—mobile keys are transforming the guest experience and streamlining hotel ops.

Adaptive Reuse | Mar 30, 2024

Hotel vs. office: Different challenges in commercial to residential conversions

In the midst of a national housing shortage, developers are examining the viability of commercial to residential conversions as a solution to both problems.

Adaptive Reuse | Mar 26, 2024

Adaptive Reuse Scorecard released to help developers assess project viability

Lamar Johnson Collaborative announced the debut of the firm’s Adaptive Reuse Scorecard, a proprietary methodology to quickly analyze the viability of converting buildings to other uses.

Products and Materials | Feb 29, 2024

Top building products for February 2024

BD+C Editors break down February's top 15 building products, from custom-engineered glass bridges to washroom accessories.

Designers | Feb 23, 2024

Coverings releases top 2024 tile trends

In celebration of National Tile Day, Coverings, North America's leading tile and stone exhibition, has announced the top 10 tile trends for 2024.

Mixed-Use | Jan 29, 2024

12 U.S. markets where entertainment districts are under consideration or construction

The Pomp, a 223-acre district located 10 miles north of Fort Lauderdale, Fla., and The Armory, a 225,000-sf dining and entertainment venue on six acres in St Louis, are among the top entertainment districts in the works across the U.S.

boombox1 - default
boombox2 -
native1 -

More In Category

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021