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CoStar Insight

As fewer hotels get built, US faces future of limited growth in new supply

Number of rooms under construction has dipped to 136,000
Challenging financing conditions, including elevated interest rates on construction loans and persistently higher construction costs, are resulting in fewer new hotels being built. Shown here is The Strider Hotel Boston, Curio Collection by Hilton, currently under construction in Brighton, Massachusetts. (CoStar)
Challenging financing conditions, including elevated interest rates on construction loans and persistently higher construction costs, are resulting in fewer new hotels being built. Shown here is The Strider Hotel Boston, Curio Collection by Hilton, currently under construction in Brighton, Massachusetts. (CoStar)
CoStar Analytics
February 2, 2026 | 12:04 AM

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A challenging financing environment for developers has led to fewer hotel rooms being built, meaning future supply growth will remain muted in the U.S.

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