U.S. hotel construction increased for seventh consecutive month

International news
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.

“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.”

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%)