The hotel development pipeline in the U.S. reveals developers increasingly splitting their attention between full-service projects and the rapidly expanding limited-service segment. According to recent data from Lodging Econometrics (LE), while luxury hotels continue to target high-net-worth travelers with opulent new builds, the most dynamic growth continues to occur in the upper-midscale chain scale.
Overall, however, full-service developments are commanding a more substantial portion of the U.S. hotel construction pipeline, with full-service projects—encompassing luxury, upper-upscale, upscale and casino properties—representing 2,295 projects and 349,812 rooms, or 37% and 48% of the total pipeline respectively.
The full-service segment has seen significant expansion since 2020, marked by the introduction of 30 new brands in the U.S. Currently, full-service properties represent 19% of total U.S. census and 40% of available rooms, and posted a 6% increase in projects and 4% growth in room count compared to the previous year. In Q3 alone, 97 new full-service hotel projects were announced into the pipeline accounting for 13,968 rooms.
According to LE’s projections, this segment is poised for continued growth, with 235 new full-service projects totaling 35,416 rooms scheduled to open for all of 2024. This expansion trajectory is expected to accelerate, with 283 projects (41,444 rooms) slated to open in 2025, followed by a further increase to 343 projects (44,863 rooms) in 2026.
Several landmark full-service properties have made their debut in the past 12 months, significantly impacting their respective markets. The highly anticipated 3,644-room Fontainebleau Las Vegas represents one of the most substantial additions to the Strip’s skyline, while the 976-room Signia by Hilton Atlanta Georgia World Congress Center strengthens Atlanta’s convention demand capabilities. Other notable openings include the 888-room Loews Hotel Arlington & Convention Center in Texas, the 661-room Tempo by Hilton Times Square, marking Hilton’s latest lifestyle brand entry in New York City’s iconic entertainment district, and Marriott’s Hotel New York JFK Airport, boasting 360 rooms, strengthening its presence in New York. These openings underscore the industry’s continued investment in large-scale, amenity-rich properties in key urban and leisure destinations.
While full-service hotels continue to make headlines with marquee openings, the limited-service segment, which consists of properties in the upper-midscale, midscale and economy chain scales, presents an equally compelling narrative of growth and innovation. This segment has emerged as the preferred vehicle for developers seeking to maximize returns while minimizing operational complexity. Limited-service development continues to dominate the U.S. hotel pipeline, reaching 3,915 projects with 372,809 rooms at the close of Q3 2024—representing 63% of total projects and 52% of rooms in the pipeline. The segment’s momentum was particularly evident in Q3, which saw the announcement of 304 new projects comprising 28,445 rooms. Notably, both the upper-midscale and midscale chain scales achieved record highs at the quarter’s end, contributing to the segment’s robust 11% year-over-year growth in both projects and rooms.
Since 2020, the limited-service sector has demonstrated remarkable brand expansion with 35 new brands entering the U.S. market, predominantly in the high-demand extended-stay category. Limited-service accounts for 81% of U.S. hotel properties and 60% of total room inventory. LE forecasts robust growth for the sector, with 396 new limited-service projects comprising 36,744 rooms expected to open for all of 2024. This momentum is projected to strengthen further, with 476 projects (44,820 rooms) forecasted to open in 2025, escalating to 595 projects (56,154 rooms) in 2026.
As hotel development continues to evolve across both full-service and limited-service segments, access to development projects including renovations and conversions for you becomes increasingly crucial for strategic decision-making and revenue growth. Lodging Econometrics (LE) can provide detailed insights, pipeline intelligence, and key decision-maker contacts that can drive your business growth. For detailed intelligence on hotel development opportunities across the U.S. or any global market, connect with our team today at 603-431-8740, ext. 0025 or email us at [email protected].
