U.S. hotel construction down for 15 consecutive months

ARLINGTON, Va. – 29 April 2026 – The volume of U.S. hotel rooms under construction decreased year over year for a 15th consecutive month, according to CoStar’s March 2026 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. 

U.S. Hotel Pipeline 
March 2026 (percentage change from March 2025)

• In construction: 136,990 rooms (-5.4%)
• Final Planning: 247,728 rooms (-9.3%)
• Planning: 333,467 rooms (-7.3%) 

“Despite a continued decrease in the number of rooms in construction, there are just 10 less hotels in that phase than in March 2025,” said Isaac Collazo, STR’s senior director of analytics. “We are also seeing a shift in movement through the pipeline compared to last year, with more hotels advancing from earlier stages into construction. Development is still moving forward, albeit at a lower volume.”

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

1. Luxury (4.5% / 8,039 rooms)

2. Upper Upscale (2.0% / 13,932 rooms)

3. Upscale (3.3% / 31,204 rooms)

4. Upper Midscale (3.3% / 40,179 rooms)

5. Midscale (2.6% / 13,897 rooms)

6. Economy (0.7% / 4,398 rooms)

“The Luxury segment stands to see the largest percentage increase in supply (+4.5%) based on current construction,” said Collazo. “Going purely by number of rooms, the select-service segments remain at the top of the list by a wide margin.”

For more information about the company and its products and services, please visit www.costargroup.com. 

News Media Contact
Haley Luther
Senior Communications Manager 
(216) 278-0627
hluther@costar.com

About CoStar Group

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; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. 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 131 million average monthly unique visitors in the first quarter of 2026, 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.