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Pandemic fallout and labor shortages extend hotel construction

Average hotel construction timelines have increased between four and eight months, depending on class
CoStar Analytics
October 2, 2025 | 1:44 P.M.

The average time to build a hotel in the U.S. is taking longer, affecting costs for developers and making new hotels riskier. A longer construction timeline increases the chance for increasing costs, be it from weather impacts, increasing tariffs on furniture, or construction labor shortages.

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News | Pandemic fallout and labor shortages extend hotel construction