US hotel construction hits five-year low
The total stood at 138,922 rooms, an 11.9% decrease compared to June 2024. This marks a significant slowdown in hotel development, reflecting broader economic challenges and shifting market dynamics.
Economic uncertainty and rising costs dampen development
Analysts attribute the decline to several factors, including reduced demand for hotel stays, persistent economic uncertainty, and escalating construction costs.
Isaac Collazo, senior director of analytics at STR, noted that the current environment has led to a 20-quarter low in the number of rooms under construction.
He added that more than half of the rooms in development are located in the Southern United States, primarily outside the top 25 metropolitan markets, with many projects still in the early planning stages and unlikely to commence construction soon.
Regional trends and market focus
The Southern region accounts for over half of all rooms currently under development, with a significant portion situated outside major metropolitan areas.
Despite the overall slowdown, the upscale and upper upscale segments continue to dominate new developments, comprising the majority of rooms under construction.
These segments remain the focal point for developers, even as the number of new projects is expected to decrease in the near future.
Future outlook for hotel development
Looking ahead, the hotel construction pipeline remains active, with 349,802 rooms in the planning phase, a 4.8% increase from the previous year.
However, the majority of these projects are still in the early stages, and many may face delays or cancellations due to ongoing economic pressures.
The industry will need to navigate these challenges carefully to maintain a balanced and sustainable development trajectory.
The sustained decline in hotel construction underscores the need for developers and investors to adapt to the current economic landscape.
While the planning phase shows some growth, the actualisation of these projects will depend on the resolution of economic uncertainties and the stabilization of construction costs.
"US hotel construction hits five-year low" was originally created and published by Hotel Management Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Forbes
36 minutes ago
- Forbes
Imports From USMCA Partner Canada Face Crippling 35% Tariffs Tomorrow
Canada faces steep 35% tariffs on almost 60% of its imports to the United States if President Trump follows through on his Aug. 1 deadline for imposing the extraordinary duty. That's because just 19.1% of Canada's $168.54 billion in imports this year have been categorized as eligible for duty-free entry under the USMCA agreement. In addition to that 19.1%, Trump has indicated oil would, like USMCA-compliant imports, remain duty free. It accounts for 22% of the value of all U.S. imports from Canada. It's also a nod to U.S. dependence on Canadian oil and the havoc a 35% tariff would create. Canada is the longtime No. 1 supplier of oil imports to this country, accounting for 61.5% this year. There have been only murmurs about Canada cutting off or limiting its oil exports to the United States in retaliation. Canada is the No. 2-ranked source of U.S. imports and overall trade, trailing only Mexico. Trump gave Mexico a 90-day pause on 30% tariffs on Thursday, one day before similarly extreme tariffs would have gone into place. But even that pause does not appear absolute. As is the case with so many of Trump's announcements, the details tend to drip out slowly and often change the narrative, sometimes from the White House and sometimes from the other country. It's possible that U.S. imports of passenger vehicles from Mexico will still face a 25% tariff. Only 55.9% of those imports from Mexico are qualifying for USMCA duty-free status, according to U.S. Census Bureau data I analyzed, down from 82.5% last year. Nevertheless, Trump kicked the can down the road with Mexico, as he has done repeatedly since announcing the 'Liberation Day' tariffs on the world on April 2, an effort to decrease the U.S. merchandise trade deficit, which is still increasing. Trump indicated Wednesday that Canada's signaling that it supported the creation of a Palestinian state, following the lead of France and the United Kingdom, would make any deal with the United States northern neighbor difficult. As was the case with Mexico, Trump is playing with fire. The two countries are not only the top two trade partners and top two importers into the United States, they are also the top two U.S. export markets – opening up the possibility of retaliatory tariffs. While Canada accounts for 15.7% of all U.S. exports to the world by value this year, it ranked first in more than half of all the categories used to describe the products, when I last wrote about the topic. Further, it ranked either first, second or third for 79.29% of all U.S. export categories. This is important because the impact of any retaliatory tariffs would be widespread and not concentrated on a few key U.S. exports. The list included everything from passenger vehicles, commercial vehicles, motor vehicle engines, tractors, transmission shafts, catalytic converters, and oil and air filters – all part of the highly intertwined automotive trade among Canada, the United States and Mexico – but also strawberries and blueberries. The 19.1% of U.S. imports from Canada that is eligible for USMCA duty-free entry is down from 37.9%. That seemingly low percentage is almost certainly because, prior to the possibility of 35% tariffs, the tariff rate on most U.S. imports from Canada (and many other countries) was in the low single digits, as I addressed previously. Nevertheless, a 35% tariff would be punishing. Here are a few examples where U.S. imports from Canada appear particularly vulnerable: There is apparently ongoing discussion about U.S. imports of aluminum after Ford indicating it is already getting hit hard by tariffs despite the fact that it is making vehicles in the United States. Two points are in order, covered in some detail in my post earlier today. First, the 19.7% that fits into the category of Census Bureau data that includes USMCA-compliance is significantly lower than recent years but the percentage has been dropping. Prior to 2017, U.S. imports from Canada were eligible to enter duty free sometimes slightly more than 50% of the time and sometimes slightly less. It first dipped below 40% in 2018 and has stayed there – until this year, when it dropped not only below 30% but also 20%, to 19.7%. The second point is the reason for the drop. It's supposition but also the most plausible explanation for the sharp decline for both Canada and Mexico: Heightened enforcement by U.S. Customs and Border Protection – and the fear of heightened enforcement, since it can be retroactive. The bottom line is that, should the tariffs on Canada go through, they would be more punishing than any tariffs currently in place, given the size of the relationship. And that punishment would not only be directed at U.S. imports from Canada but, quite possibly, would also affect U.S. exports to Canada.
Yahoo
an hour ago
- Yahoo
UnitedHealth appoints Wayne DeVeydt as CFO in another management shake-up
(Reuters) -UnitedHealth said on Thursday it will replace its finance chief John Rex with an external hire, Wayne DeVeydt, adding to the management changes at the health insurer that has been struggling to control its medical costs. Rex, who has been handling the role since 2016, will continue as a strategic advisor to the CEO, with the changes effective September 2. DeVeydt was most recently managing director and operating partner at Bain Capital, and was also the finance chief of UnitedHealth's rival Elevance , then called Anthem, between 2007 and 2016. The largest U.S. health insurer had seen an abrupt departure of Andrew Witty as CEO in May, with Stephen Hemsley replacing him following struggles with elevated medical costs that were also seen in the rest of the industry. Hemsley is under pressure to regain investor trust as the company faces financial struggles and reputational damage that surfaced after the then-CEO of its health insurance unit was gunned down on a New York City street in December. Sign in to access your portfolio


New York Times
an hour ago
- New York Times
Here Is What to Know About Trump's 50% Tariffs on Brazil
The 50 percent tariffs President Trump imposed on Brazil this week are some of the highest he has applied on any country this year as he reshapes a global trading system he deems unfair to the United States. But the United States actually has had a trade surplus with Brazil for over a decade. Instead, Mr. Trump is targeting Brazil largely for political reasons — the prosecution of Jair Bolsonaro, his ally, who is accused of plotting a coup after he lost the last presidential election. Mr. Trump has called the case a 'witch hunt.'' He is also targeting a Brazilian Supreme Court justice he believes is unfairly censoring conservative voices online. Yet the tariffs were softened by hundreds of exceptions, including on some of Brazil's most important exports to the American market, which could make the effect on Brazil's economy less severe. Still, the levies will affect billions of dollars worth of goods and, if they remain in place, inflict pain in both nations. Want all of The Times? Subscribe.