Story perspectives

U.S. Hotel Construction Plummets for Ninth Month Straight

10/22/2025

Summary

Story summary

U.S. hotel room construction declined for ninth consecutive month in September 2025, with 137,956 rooms under construction and a 12.3% year-over-year drop.
This level is the lowest in 40 quarters, significantly below peak of over 80,000 rooms in Q3 2020, as costs and uncertainty deter developers.
Despite the downturn, more rooms are being built now than after the Great Recession, with 5,911 luxury rooms and 39,075 upper midscale rooms under construction.

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Story summary

U.S. hotel room construction declined for ninth consecutive month in September 2025, with 137,956 rooms under construction and a 12.3% year-over-year drop.
This level is the lowest in 40 quarters, significantly below peak of over 80,000 rooms in Q3 2020, as costs and uncertainty deter developers.
Despite the downturn, more rooms are being built now than after the Great Recession, with 5,911 luxury rooms and 39,075 upper midscale rooms under construction.