WASHINGTON – 24 April 2025 – The volume of U.S. hotel rooms under construction decreased year over year for a third consecutive month, according to CoStar’s March 2025 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
U.S. Hotel Pipeline
March 2025 (percentage change from March 2024)
- In construction: 144,760 rooms (-7.5%)
- Final Planning: 273,068 rooms (+3.7%)
- Planning: 359,878 rooms (+10.9%)
“With increased uncertainty and the potential for rising construction costs, it is not surprising that fewer projects have broken ground,” said Isaac Collazo, senior director of analytics at STR. “The number of hotels under construction is down 103 versus a year ago, meaning most markets are seeing one less hotel in the final phase of the pipeline. The overall pipeline remains robust, however, with 6,500 hotels and 777,000 rooms when you add in the planning phases. We’ll be watching those planning phases closely because those are where economic uncertainty is most likely to be impactful. Projects already in construction are going to be completed regardless.”
Chain Scale Segments (% of existing supply, in-construction room count)
1.Luxury (4.1%, 6,421 rooms)
2. Upper Upscale (2.6%, 18,813 rooms)
3. Upscale (3.8%, 35,082 rooms)
4. Upper Midscale (3.2%, 38,217 rooms)
5. Midscale (2.7%, 13,883 rooms)
6. Economy (0.9%, 5,933 rooms)
“The construction decline was concentrated in Upper Midscale, which accounted for more than a third of the difference in room count and slightly more in the number of hotels versus a year ago,” said Collazo. “Even with the decrease, Upper Midscale makes up the largest number of hotels and rooms under construction.”
For more information about the company and its products and services, please visit www.costargroup.com.
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, online marketplaces and 3D digital twin technology. 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 also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, 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 134 million average monthly unique visitors in the fourth 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.