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CoStar Insight

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

Number of rooms under construction has dipped to 136,000
Challenging financing condition and 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 condition and 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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News | As fewer hotels get built, US faces future of limited supply