National Hotel Construction Pipeline Shrinks as More Projects Held in Planning Stage

The “higher-for-longer” interest rate environment is making construction loans more expensive and as a result, many more projects are held in the final planning stage of the U.S. hotel development pipeline. In September, the number of rooms in construction continued to decline and hit 146,000 rooms, down from its high point in early 2020 of around 220,000 rooms. At the same time, the number of rooms in the final planning stage grew by 40% year over year to 242,000 rooms.