The global hotel construction pipeline reached a record 15,922 projects totaling approximately 2.4 million rooms in the fourth quarter of 2025, according to new data from Lodging Econometrics.
The total pipeline increased 1% year over year in Q4, reflecting continued development momentum despite broader economic uncertainty and fluctuating financing conditions. Of the total projects, 6,140 were under construction during the quarter. An additional 3,845 projects are scheduled to begin construction within the next 12 months, while a record 5,937 projects are in the early planning stages — signaling sustained developer confidence in long-term travel demand.
The United States led all countries in total projects, accounting for 39% of the global pipeline with 6,146 projects, representing 720,089 rooms. China followed with 3,608 projects, or 644,938 rooms, making up 23% of the global total.
At the city level, Dallas ranked first worldwide with 193 projects in the pipeline, followed by Atlanta with 159 projects and Chengdu, China, with 136 projects. The concentration of activity in major U.S. metros underscores the continued strength of domestic travel, group business and urban redevelopment initiatives.
Industry analysts note that while international markets continue to recover from pandemic-era disruptions at varying speeds, the U.S. remains a primary engine of global hotel construction due to stable demand fundamentals and capital market depth.
Higher-tier chain scales fueled much of the pipeline’s expansion in Q4. The global luxury segment reached a record 1,328 projects, totaling 252,544 rooms — up 8% by project count and 4% by room count year over year.
The upper upscale segment also set a new high, with 1,883 projects and 391,391 rooms in the pipeline, increasing 9% and 4%, respectively, compared to the same period last year.
Within the U.S. specifically, the luxury hotel pipeline climbed to a record 95 projects encompassing 22,045 rooms in the fourth quarter.
Major hospitality companies are leaning into this trend. Both Hyatt Hotels Corporation and Marriott International have indicated plans to expand their luxury portfolios in 2026 after reporting strong fourth-quarter performance gains in that segment. Executives at both companies pointed to robust pricing power and demand from high-net-worth travelers.
Industry observers have attributed the luxury segment’s outperformance to a widening wealth gap and resilient discretionary spending among affluent consumers, even as broader economic pressures weigh on middle-market travel demand.
Beyond new ground-up construction, hotel conversions played an increasingly important role in development strategies worldwide. The global conversion pipeline reached a record 2,815 projects in Q4, up 13% year over year.
Conversions were described as “integral” to Hilton’s growth strategy in 2025, according to CEO Chris Nassetta during a recent earnings call. Converting existing properties into branded hotels allows operators to expand their footprint more quickly and often at lower cost than new builds.
Similarly, IHG Hotels & Resorts recently introduced a new upscale collection brand primarily focused on conversions, further signaling industry emphasis on adaptive reuse and brand repositioning.
Developers and operators increasingly view conversions as a way to modernize aging assets, capture market share and respond to evolving guest expectations without the extended timelines associated with new construction.
.jpg)
With nearly 16,000 projects in the pipeline and record activity in luxury, upper upscale and conversion segments, the hotel development sector appears positioned for continued growth into 2026.
However, industry leaders caution that rising construction costs, labor shortages and potential interest rate volatility could influence project timelines. Even so, the strength of early planning numbers suggests that developers remain optimistic about long-term travel demand — particularly in major U.S. metros and high-end segments.
As the U.S. continues to command the largest share of the global pipeline, its performance will likely play a decisive role in shaping worldwide hotel construction trends in the year ahead.
Originally reported by Jenna Graber, Reporter in Construction Dive.
.webp)
