The hotel development landscape in the U.S. shows a notable trend, with developers increasingly balancing their focus between full-service projects and the thriving limited-service sector. Recent data from Lodging Econometrics (LE) indicates that while luxury hotels continue to cater to affluent travelers through lavish new constructions, the upper-midscale chain scale is witnessing the most dynamic growth.
Full-service developments currently occupy a significant portion of the U.S. hotel construction pipeline, with 2,295 projects and 349,812 rooms in this category, making up 37% and 48% of total projects and rooms, respectively. The full-service segment has experienced substantial growth since 2020, driven by the introduction of 30 new brands. Presently, full-service properties account for 19% of the total U.S. hotel inventory and 40% of available rooms, marking a 6% rise in projects and a 4% increase in room count compared to last year. In Q3 alone, there were 97 new full-service hotel projects announced, contributing 13,968 rooms to the pipeline.
LE forecasts continued growth for this segment, with 235 new full-service projects totaling 35,416 rooms expected to open in 2024. This upward trend is projected to pick up speed, with 283 projects (41,444 rooms) set to debut in 2025, followed by 343 projects (44,863 rooms) in 2026.
Several landmark full-service properties have launched in the past year, greatly influencing their markets. The highly anticipated Fontainebleau Las Vegas, with 3,644 rooms, has become a notable addition to the Strip’s skyline. The 976-room Signia by Hilton Atlanta, located near the Georgia World Congress Center, enhances Atlanta’s appeal for conventions. Other significant openings include the 888-room Loews Hotel Arlington & Convention Center in Texas, the 661-room Tempo by Hilton Times Square—Hilton’s latest lifestyle brand in New York City—and Marriott’s 360-room Hotel New York JFK Airport, further expanding its footprint in the region. These developments highlight the industry’s ongoing commitment to large-scale, amenity-rich properties in key urban and leisure locations.
While full-service hotels are gaining attention with high-profile openings, the limited-service segment—which includes upper-midscale, midscale, and economy chain scales—presents its own compelling narrative of innovation and growth. This segment has become the preferred choice for developers aiming to optimize returns and simplify operations. As of Q3 2024, limited-service development dominated the U.S. hotel pipeline with 3,915 projects and 372,809 rooms, making up 63% of total projects and 52% of rooms. The third quarter alone witnessed the announcement of 304 new projects, adding 28,445 rooms. Notably, both the upper-midscale and midscale chain scales reached record highs, contributing to an impressive 11% year-over-year growth in projects and room count.
Since 2020, the limited-service sector has seen remarkable brand expansion, with 35 new brands entering the market, primarily in the high-demand extended-stay category. Limited-service properties now account for 81% of U.S. hotel inventory and 60% of total room supply. LE projects that the sector will continue to thrive, with 396 new limited-service projects totaling 36,744 rooms expected in 2024. This growth is anticipated to accelerate further, with 476 projects (44,820 rooms) in 2025, escalating to 595 projects (56,154 rooms) in 2026.
As the hotel development scene evolves in both full-service and limited-service sectors, having access to information on development projects—including renovations and conversions—becomes crucial for strategic choices and revenue enhancement. Lodging Econometrics (LE) offers detailed insights, pipeline intelligence, and connections to key decision-makers that can propel your business forward. For in-depth intelligence on hotel development opportunities in the U.S. or any global market, reach out to our team today at 603-431-8740, ext. 0025, or email us at info@lodgingeconometrics.com.
This article originally appeared on hotelbusiness.com under the title “Luxury projects hit historic highs while limited-service hotel development booms in the United States.”
