Hospitality Construction Trends

Expanding Sun Belt markets at the center of discussions. While fewer hotels will break ground this year, reducing supply-side pressure beyond 2026, the number of rooms underway is already elevated. Roughly 94,500 new keys are slated to open in 2026, a five-year high. These upcoming deliveries — which will increase inventory by 1.6 percent — and the 395,000 rooms added during the prior five years will make it difficult for the hotel sector to record near-term occupancy gains, even if overall demand improves.