NYC, Nashville set to open the most hotel rooms in 2025

ARLINGTON, Va. – 7 February 2025 – Among U.S. markets, New York City and Nashville are projected to open the most hotel rooms in 2025, according to CoStar pipeline data. CoStar is a leading global provider of commercial real estate data, analytics and news.

Top markets by projected 2025 room openings 

• New York City (5,719 rooms) 
• Nashville (2,849 rooms) 
• San Diego (2,818 rooms) 
• Dallas (2,749 rooms) 
• Phoenix (2,483 rooms)

“The ongoing development in New York City is not surprising given the market’s status and its high performance in recent years,” said Isaac Collazo, STR’s senior director, analytics. “With major sources of leisure and business travel, New York reported the highest occupancy level of any U.S. market in both 2023 and 2024. Though less rooms are in construction compared to 2023, there are more rooms in the planning and final planning stages, pointing to continued investment in the long term.

“Nashville is in a similar situation, with most rooms set to open across the Upper Midscale and Upscale classes this year. Unlike NYC, Nashville’s construction total is up from last year.”

U.S. hotel openings 

• 2024: 721 hotels/73,682 rooms 

• 2025 (projected): 953 hotels/108,366 rooms

• 2026 (projected): 1,865 hotels/198,319 rooms

“At the end of 2024, overall U.S. hotel construction activity was pretty muted with many projects remaining on the sidelines, as evidenced by the large gains in the planning stages,” said Collazo. “Restrictive capital and lending standards, along with high interest rates and construction costs, will keep construction volume well below the high seen in 2019 for some time. The U.S. is expected to open nearly 34,000 Upper Midscale rooms in 2025 – the same segment that currently leads the in-construction room count. 

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News Media Contact
Haley Luther
Senior Communications Manager – STR 
(216) 278-0627
hluther@str.com 

About CoStar Group, Inc.  
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, and online marketplaces. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. 

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands include STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.