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More than 590,000 hotel rooms are currently in the US pipeline

Nov. 03, 2021
4 min read
large construction site building tall hotel, multiple cranes
More than 590,000 hotel rooms are currently in the US pipeline
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The global COVID-19 pandemic may have put a lot of our travel dreams on pause over the last 19 months, especially during the early months and when new variants started to spread across the globe. But while many of us were stuck at home, hotel brands around the world continued to plot their growth for when people could travel again.

Now, as we’re entering the home stretch of 2021, new data from Lodging Econometrics, a group offering hotel development services and lodging reports, shows exactly what hotels here in the U.S. have been doing.

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According to the report, in the third quarter of 2021, there are currently 4,837 hotel projects in the pipeline, equaling 592,259 rooms. Despite the fact those numbers represent an 8% decrease in projects and 10% decrease by rooms year-over-year, having a half-million new hotel rooms scattered across the country is still a significant number considering what the industry has gone through.

Out of the new properties, major cities have a significant number of projects in the works, with southern cities like Dallas, Atlanta and Houston, along with the country’s two largest cities, New York and Los Angeles, representing the top five.

Here’s exactly how many projects and rooms these cities have in the pipeline as of Q3:

  • Dallas: 147 projects/17,711 rooms
  • Atlanta: 139 projects/8,659 rooms
  • Los Angeles: 133 projects/22,145 rooms
  • New York City: 130 projects/22,417 rooms
  • Houston: 90 projects/9,225

Together, these five cities represent 13% of projects and 15% of rooms in the total U.S. pipeline, according to Lodging Econometrics.

In the Dallas area alone, The Dallas Morning News reports 48 new hotels are scheduled to start construction in the next 12 months.

Planning, building and opening new hotels is a long-term game. According to Lodging Econometrics, “many developers really do have a long-term positive outlook on hotel development as projects in the early planning stage are up considerably, with 1,978 projects/239,831 rooms, a 27% increase by projects, and 25% by rooms YOY and reaching a cyclical peak this quarter.”

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Despite the future-looking optimism, the total number of hotels actually under construction at the end of Q3 was down. Most of that decrease can be attributed to hotels that have been completed and opened but it is also due to some COVID-era problems like labor and supply issues.

“Presently, inflation and the increasing cost and sourcing of labor and materials, combined with supply chain shortages and delays, continue to be a major variable for hotel development,” the report says. “In response, developers are reworking budgets, revising plans to minimize costs, and adjusting construction start and project opening dates to endure the challenges of a recovering industry.”

Of the new hotels under construction in the U.S., Marriott is leading the way with 1,286 projects/166,174 rooms, followed by Hilton with 1,223 projects/139,742 rooms and IHG with 769 projects/77,558 rooms. Together these three companies represent a whopping 68% of all projects in the U.S. construction pipeline.

Breaking it down even further, three mid-market, limited-service brands, make up 20% of the hotels in the total construction pipeline:

  • Home2 Suites by Hilton, 402 projects/41,846 rooms
  • Holiday Inn Express (IHG), 301 projects/28,852 rooms
  • Fairfield Inn (Marriott), 246 projects/23,653

Hyatt, whose specific data was not included in the Lodging Econometrics reporting, has roughly 98 hotels in the U.S. pipeline, according to the brand’s development page. Just this week, Hyatt closed its deal to buy Apple Leisure Group, adding roughly 100 new properties around the world to the World of Hyatt program, plus a number of pipeline projects in the Americas and Europe.

The good news for travelers is that in 2021, 665 new hotels opened in the U.S through the third quarter, with another 221 projected to open by the end of the year. Analysts at Lodging Econometrics expect 970 hotels to open in 2022 and 961 to open in 2023.

Of course, with so many new hotels on the horizon, we’re here to help you cut through the clutter to decide which ones are worthy of your hard-earned cash and points. We’ve been rounding up our favorite hotel openings this fall, summer and spring, as well as what’s (hopefully) coming before we ring in the new year.

Featured image by Getty Images
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
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  • Intro Offer
    Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

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    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

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Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023