Planning Phases of U.S. Hotel Pipeline Reflect Confidence in Travel

Activity in the planning phases of the U.S. hotel pipeline remain up, while rooms in construction decreased after two months of gains, according to CoStar's December 2023 data.

U.S. Hotel Pipeline
December 2023 (percentage change from December 2022)

• In construction: 152,114 rooms (-4.5%)
• Final Planning: 255,039 rooms (+19.7%)
• Planning: 318,597 rooms (+32.7%)

“The number of rooms in construction fell in December following a nearly 7% increase in October that held steady through November,” said Isaac Collazo, STR's VP, analytics. “For most of 2023, rooms in construction trailed 2022, but the increases in both the final planning and planning stages point to confidence in travel for the foreseeable future. Historically, the final phase of the pipeline has declined month over month in December.”

Upper midscale and upscale projects continue to dominate the pipeline, accounting for more than half of the in-construction room count.

Chain Scale Segments (% of existing supply, in-construction room count)

1. Luxury (4.7%, 6,631 rooms)
2.ÊUpper Upscale (2.7%, 19,112 rooms)
3.ÊUpscale (3.9%, 34,457 rooms)
4. Upper Midscale (3.5%, 42,467 rooms)
5.ÊMidscale (2.5%, 12,455 rooms)
6.ÊEconomy (1.2%, 7,837 rooms)

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