U.S. hotel construction increased for seventh consecutive month

The volume of U.S. hotel rooms under construction increased year over year for a seventh consecutive month, according to CoStar’s latest September 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.

U.S. Hotel Pipeline
September 2024 (percentage change from September 2023)

• In construction: 157,253 rooms (+7.0%)
• Final Planning: 268,190 rooms (+10.4%)
• Planning: 336,205 rooms (+38.4%)

“Growth in rooms in construction has accelerated over the last seven months,” said Isaac Collazo, STR’s VP, analytics. “Despite higher interest rates throughout 2024, developer appetite has remained strong. With the recent rate cut in September, and with more on the way, investor sentiment remains positive, as evidenced by continued double-digit growth across the planning and final planning stages of the pipeline. Upscale and upper midscale continue to account for about 50% of all rooms in the final phase of the pipeline, while luxury and midscale showed the highest growth in rooms in construction, up 48.5% and 34.5%, respectively.”

Chain Scale Segments (% of existing supply, in-construction room count)
1. Luxury (5.6%, 8,508 rooms)
2. Upper Upscale (2.6%, 18,156 rooms)
3. Upscale (4.2%, 38,401 rooms)
4. Upper Midscale (3.4%, 40,255 rooms)
5. Midscale (2.9%, 14,902 rooms)
6. Economy (1.2%, 7,653 rooms)

For more information about the company and its products and services, please visit www.costargroup.com.