Extended Stay Projects Account for 40% of the U.S. Hotel Construction Pipeline as Luxury and Upper Upscale Projects Reach Record Highs at Q3 2026

According to the Q3 2026 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. pipeline stands at 5,901 projects/692,999 rooms.

At the close of the third quarter, there are 1,094 projects/137,371 rooms under construction. Projects scheduled to start construction in the next 12 months total 2,175 projects/246,793 rooms. Projects in early planning stand at 2,632 projects/308,835 rooms. Construction starts for the quarter total 152 projects/19,106 rooms, while new project announcements total 195 projects/22,016 rooms.

LE analysts report that the luxury chain scale reaches record-high project and room counts at Q3, with 108 projects/25,776 rooms, up 14% by projects and 19% by rooms YOY. The upper upscale chain scale also reaches a record-high project count at the close of the third quarter, standing at 375 projects/66,028 rooms, up 3% by projects YOY. The upper midscale chain scale continues to have the largest project count in the U.S. pipeline, with 2,206 projects/211,553 rooms. Following is the upscale chain scale with 1,257 projects/157,225 rooms. Together, the upscale and upper midscale chain scales account for 66% of the projects and 63% of the rooms in the pipeline. The midscale chain scale stands at 918 projects/76,487 rooms.

Brand conversion activity stands at 1,516 projects/146,544 rooms, up 3% by projects YOY. Combined with renovation activity of 525 projects/105,365 rooms, the total renovation and brand conversion pipeline in the U.S. stands at 2,041 projects/251,909 rooms.

At the close of Q3, extended stay projects in the U.S. pipeline total 2,352 projects/236,219 rooms, accounting for 40% of projects and 34% of rooms in the total pipeline. Middle tier extended stay brands make up the majority of the segment with 1,628 projects/152,287 rooms, representing 28% of projects in the total U.S. pipeline, and 69% of the extended stay pipeline. Upper tier extended stay stands at 575 projects/66,866 rooms, while lower tier extended stay accounts for 149 projects/17,066 rooms.

Of the extended stay projects in the pipeline, 424 projects/44,689 rooms are currently under construction. Extended stay projects scheduled to start construction in the next 12 months total 1,006 projects/102,999 rooms, up 2% by projects and 1% by rooms YOY. Another 922 projects/88,531 rooms are in the early planning stage.

At Q3, there are 1,506 shared site projects/149,303 rooms in the U.S. pipeline. A shared site refers to a single property in which more than one hotel or lodging brand operates within a shared development property. Of these shared sites, at Q3, 264 projects/29,021 rooms are under construction, 607 projects/58,364 rooms are scheduled to start construction in the next 12 months, and 635 projects/61,918 rooms are in early planning. The upper midscale chain scale accounts for the largest share of shared site projects at 44%.

Through the third quarter, 407 new hotels with 46,031 rooms have opened in the U.S., with another 191 projects/22,160 rooms anticipated to open by year-end 2026. LE projects 2026 to finish at 598 new hotels with 68,191 rooms, a 1.2% supply increase. Looking ahead, LE analysts forecast 668 new hotels/72,667 rooms to open in calendar year 2027, representing a 1.3% supply increase. For 2028, LE forecasts 775 new hotels/86,377 rooms to open, amounting to a supply increase of 1.5%.

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