In the second quarter of 2026, there were 5,975 hotel projects under construction in the United States, totaling 703,001 rooms. These figures represent a decrease of approximately 4.9% and 4.6%, respectively, compared to the same period last year. Despite the overall decline, the number of newly announced projects increased by 18%, and construction starts rose by 14%. The luxury and upper midscale segments reached record highs.

Construction and Planning Trends

During the reporting period, 1,081 hotel projects were under construction in the U.S., with another 2,147 projects scheduled to begin within the next 12 months, and 2,747 in the early planning stages. All phases of the construction pipeline saw a decrease in project numbers compared to the previous year. A slowdown in construction activity was also noted in the first quarter of 2026, partly due to the accelerated opening of hotels ahead of major events, including the FIFA World Cup.

Segment Analysis

The upper midscale and upscale segments led in both project and room counts: upper midscale accounted for 2,225 projects (214,027 rooms), while upscale had 1,282 projects (159,252 rooms). Together, these two segments made up 59% of all projects and 53% of all rooms in the pipeline. In the luxury segment, the number of projects and rooms increased by 12% and 21%, respectively, reaching a record 103 projects and 25,496 rooms for the quarter. The upper upscale segment also set new records with 367 projects and 65,021 rooms.

Growth in Conversions

The number of conversion-related projects grew by 15% year-over-year, reaching a record 1,567 hotels. In the first quarter of the year, conversions became the main driver of growth in hotel company portfolios.

Geographic Distribution of Construction

Dallas ranked first among U.S. markets for hotel construction pipeline volume in the second quarter, with 183 projects. The top five also included Atlanta (157 projects), Nashville (122), Austin (116), and Phoenix (115). Dallas led in the number of projects at all stages: under construction, scheduled to start within the next 12 months, and in early planning.

Opening Forecasts

In the first and second quarters of 2026, a total of 277 hotels opened across all U.S. regions. By the end of the year, another 384 hotel openings are expected, which will increase the total annual number of new hotels. Forecasts indicate that 661 hotels will open in 2026 (a 1.3% annual increase), 738 in 2027, and 832 in 2028, corresponding to annual growth rates of 1.4% and 1.5%, respectively. Dallas is projected to lead in hotel openings in 2027, with Atlanta taking the lead in 2028. Phoenix is expected to be the top market for new hotel openings by the end of 2026, with 26 projects.