US Hotel Pipeline: Luxury Sector Hits Record Highs as New Openings Forecast

On July 23, 2026, Lodging Econometrics (LE) released its Q2 2026 US Construction Pipeline Trend Report, forecasting significant expansion in the American hotel market. The analysis projects 832 new hotels to open in 2028, reflecting a 1.5% growth rate, following an estimated 661 new hotels by the close of 2026. The pipeline currently holds 5,975 projects, comprising 703,001 rooms nationwide.

The report indicates strong activity across development phases: 1,081 projects (133,216 rooms) are under construction, with an additional 2,147 projects (245,871 rooms) expected to break ground within the next 12 months. Early planning stages account for 2,747 projects and 323,914 rooms.

A notable trend within the pipeline is the dominance of upper midscale and upscale chain scales. These segments collectively represent 59% of all projects and 53% of all rooms, with upper midscale having 2,225 projects/214,027 rooms and upscale adding 1,282 projects/159,252 rooms.

The luxury segment experienced a record high in Q2 2026, reaching 103 projects with 25,496 rooms—a 12% increase in projects and 21% in rooms year-over-year. The upper upscale chain scale also hit a record, totaling 367 projects and 65,021 rooms.

New project announcements (NPAs) rose 18% year-over-year to 280 projects (33,423 rooms) in Q2, while construction starts increased 14% to 176 projects (20,056 rooms). Hotel conversions reached a record high of 1,567 projects (152,044 rooms), up 15% year-over-year. Total conversions and renovations now represent 2,097 projects, marking a combined 7% project growth.

Our take: The robust pipeline, particularly in the luxury and upper upscale sectors, signals sustained investor confidence in the US hospitality market. The significant uptick in conversions also suggests a strategic shift towards reimagining existing properties, potentially driving new luxury product to market faster than ground-up construction. This growth trajectory, despite economic headwinds as reported by Hospitality Net — Latest News, positions the US for a considerable expansion in high-end accommodation options over the next few years.