The U.S. hotel development pipeline remained robust at the end of the second quarter, and Lodging Econometrics is forecasting continued growth in new hotel openings through 2028.
According to LE's Q2 2026 U.S. Hotel Construction Pipeline Trend Report, the total pipeline reached 5,975 projects representing 703,001 rooms at quarter's end.
Of those projects, 1,081 hotels accounting for 133,216 rooms were under construction. Another 2,147 projects with 245,871 rooms are expected to begin construction within the next 12 months, while 2,747 projects totaling 323,914 rooms remain in the early planning stages.
The upper-midscale and upscale segments continue to dominate hotel development activity. The upper-midscale pipeline stood at 2,225 projects with 214,027 rooms, while the upscale segment reached 1,282 projects and 159,252 rooms. Combined, the two segments represent 59 percent of all projects and 53 percent of all rooms in the U.S. pipeline.
Luxury and upper-upscale development also hit record levels. The luxury segment reached a record 103 projects and 25,496 rooms, up 12 percent and 21 percent, respectively, year over year. The upper-upscale segment climbed to a record 367 projects and 65,021 rooms.
Development activity continued to gain momentum during the quarter. New project announcements totaled 280 projects with 33,423 rooms, increasing 18 percent by project count and 23 percent by room count compared to a year ago. Construction starts rose to 176 projects and 20,056 rooms, up 14 percent and 17 percent, respectively.
LE also reported continued strength in conversions. The conversion pipeline reached a record 1,567 projects representing 152,044 rooms, up 15 percent in projects and 18 percent in rooms year over year. Combined hotel conversion and renovation activity totaled 2,097 projects with 255,834 rooms, reflecting a 7 percent increase in project volume.
New hotel openings remained steady during the first half of the year. LE reported that 277 hotels totaling 31,416 rooms opened during the first and second quarters of 2026. The firm expects an additional 384 hotels with 43,404 rooms to open during the second half of the year, bringing the annual total to 661 new hotels and 74,820 rooms. That would represent a 1.3 percent increase in U.S. hotel supply.
Looking ahead, LE projects 738 new hotel openings totaling 78,909 rooms in 2027, resulting in a 1.4 percent growth rate.
For the first time LE has released a forecast for 2028, projecting 832 new hotel openings with 88,321 rooms. If realized, the forecast would represent a 1.5 percent increase in U.S. hotel supply.