STAYHotel Dive · 4d ago
US hotel construction pipeline down in Q2, but higher-tier segments saw growth
Executive Brief
The 30-second read
Total U.S. hotel construction activity declined nearly 5% year-over-year in the second quarter of 2026. Despite this broad contraction, luxury and upper upscale segments experienced notable growth in project pipelines.
- 01Overall domestic hotel construction pipeline fell by approximately 5% compared to the previous year
- 02Luxury and upper upscale tiers outperformed the market with significant year-over-year development gains
- 03Lodging Econometrics data indicates a strategic shift toward premium hospitality assets in current cycles
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While the total pipeline was down nearly 5% year over year, the luxury and upper upscale segments saw notable gains, per Lodging Econometrics.