Global hotel construction surged to a new peak in the fourth quarter of 2025, signaling continued growth in the travel and tourism sector despite ongoing global economic uncertainties. A new report from Lodging Econometrics (LE) reveals a record 15,922 hotel projects in the pipeline, totaling 2,437,354 rooms – a 1% increase in project count year-over-year, according to data released February 18, 2026.
The robust pipeline indicates strong investor confidence in the long-term prospects of the hospitality industry. Currently, 6,140 projects, encompassing 1,058,945 rooms, are actively under construction worldwide. 3,845 projects with 553,140 rooms are scheduled to begin construction within the next 12 months, representing a 3% increase in rooms year-over-year. A significant 5,937 projects, totaling 825,269 rooms, are in the early planning stages, demonstrating a 4% increase in projects and a 3% increase in rooms compared to the previous year.
The demand for luxury accommodations is particularly strong, with the luxury chain scale reaching record highs. The pipeline includes 1,328 luxury projects, representing 252,544 rooms – an 8% increase in projects and a 4% increase in rooms year-over-year. The upper upscale chain scale also saw record numbers, with 1,883 projects and 391,391 rooms, increasing 9% and 4% respectively. Combined, upscale and upper midscale hotels represent the largest segment of the pipeline, totaling 8,358 projects and 1,227,133 rooms, up 1% in both project and room counts.
Regional Growth and Key Markets
The United States continues to dominate hotel construction, accounting for 39% of all projects globally with 6,146 projects and 720,089 rooms. China follows as the second-largest market, representing 23% of the global pipeline with 3,608 projects and 644,938 rooms. Collectively, these two nations account for 62% of all hotel projects currently in development. However, significant growth is being observed in other regions. India reached record highs with 906 projects and 118,334 rooms, a remarkable 31% increase in projects and 35% increase in rooms year-over-year. Saudi Arabia also experienced substantial growth, with 394 projects and 106,521 rooms, up 25% and 28% respectively.
Within the United States, Dallas, Texas, leads the nation in hotel construction with 193 projects and 23,720 rooms. Atlanta, Georgia, follows closely with 159 projects and 17,804 rooms. Internationally, Chengdu, China, ranks third with 136 projects and 24,216 rooms, followed by Guangzhou, China, with 126 projects and 25,329 rooms, and Phoenix, Arizona, rounding out the top five with 124 projects and 16,303 rooms.
Conversion and Renovation Trends
Beyond new construction, hotel conversions are playing an increasingly important role in expanding the global hotel supply. The global conversion pipeline reached a record high with 2,815 projects and 341,006 rooms, a 13% increase in projects and a 14% increase in rooms year-over-year. Combined, hotel renovations and conversions also hit record levels, totaling 3,777 projects and 540,459 rooms, up 9% and 10% respectively. This trend suggests hotel owners are increasingly opting to rebrand or renovate existing properties rather than undertaking entirely new construction projects.
Regional pipeline records were also achieved in the Asia Pacific (excluding China) with 2,323 projects and 433,241 rooms, up 11% in projects and 5% in rooms; the Middle East with 710 projects and 176,402 rooms, up 15% and 13% respectively; and Africa with 312 projects and 47,395 rooms, up 11% and 9% respectively.
During 2025, a total of 2,371 new hotels opened worldwide, adding 325,985 rooms to the global hotel supply. LE analysts forecast continued expansion, predicting 2,617 new hotels and 389,175 rooms will open in 2026, followed by 2,630 new hotels and 384,955 rooms in 2027.
The sustained growth in hotel construction and conversions suggests a continued positive outlook for the global tourism industry, though economic factors and geopolitical events will likely influence future development. As the industry evolves, monitoring these trends will be crucial for investors, developers, and policymakers alike.
What impact will these new developments have on hotel occupancy rates and average daily rates in key markets? Share your thoughts in the comments below.
