U.S. Hotel Construction Rises 7%: Here’s What Hoteliers Need to Know Now
FALLZ HOTELS™
Your Trusted Source for Intelligent Hospitality Insights
Your Trusted Source for Intelligent Hospitality Insights
◉ A Signal of Confidence, But Also Competition
According to the latest data from late 2024, the U.S. hotel development pipeline surged by 7% year-over-year, with over 157,000 rooms under active construction.
It’s the highest growth rate since pre-pandemic levels and a clear vote of confidence from developers, lenders, and large brand families.
But for owners, operators, and investors already in the game, this isn’t just a bullish headline. It’s a market signal with consequences.
✦ What This Construction Boom Really Means
This isn’t a story of national averages, it’s about hyper-local pressure and performance.
• New supply is heavily concentrated in urban and Sunbelt markets, including Dallas, Phoenix, and Nashville
• Smaller cities and tertiary markets are seeing slower recovery, but more franchise interest
• Extended-stay and select-service models lead the pipeline, especially in mixed-use corridors
For existing properties, the result is clear: more nearby keys, more pricing pressure, and a guest with more options than ever.
◉ FALLZ HOTELS™ Insight
This construction surge is the kind of shift that quietly reshapes how hotels compete, trade, and grow.
Here’s how we’re helping hoteliers stay ahead:
• FH Success Score™ benchmarking against emerging comp sets, not just past market performance
• Asset positioning strategies that turn “legacy inventory” into boutique or lifestyle contenders
• Advisory on when to hold, reposition, or discreetly sell ahead of new supply compression
Smart operators are asking: How do I stay relevant when two new flags open down the block?
That’s the question FALLZ HOTELS™ helps answer.
Want to know how new construction affects your valuation or market edge?
Let’s review your FH Success Score™ and strategy before the dust settles.
➤ Explore off-market deals today. Contact us to gain access to exclusive listings.
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Take the first step today:
- Unlock Your Hotel’s Potential: Receive a FREE Customized Revenue Growth Assessment when you register as a verified hotel owner.
- Participate in the Hotel Industry Survey: Access aggregated insights to shape your decisions and stay ahead of trends. Contact FALLZ HOTELS™ for Survey Link.
- Connect with Buyers & Sellers: Explore private listings and tailored strategies that maximize your impact.
Start Now and Transform Your Hotel.
Unlock Exclusive Insights with the FALLZ HOTELS™ Hotel Industry Survey
Contact FALLZ HOTELS™ today for the survey link.
Why Participate in the FALLZ HOTELS™ Survey?
- Confidentiality Guaranteed: Your responses and property details will remain strictly private.
- Exclusive Access: Access insights that can’t be found anywhere else.
- Industry Impact: Help shape trends and actionable strategies that benefit all participants.
At FALLZ HOTELS™, we believe in empowering you to lead the way in hospitality innovation. Let FALLZ HOTELS™ help you gain the insights and strategies you need to thrive in the ever-evolving hospitality landscape.
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Your Key to Smarter Hospitality Decisions
At FALLZ HOTELS™, we’re dedicated to keeping you informed about the latest developments in the dynamic global hospitality industry. As 2025 unfolds, we’ll continue to bring you expert insights, in-depth analyses, and updates on how hotels are evolving to meet the needs of hoteliers, investors, and stakeholders.
FALLZ HOTELS™ will be right here, guiding you every step of the way.
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