New York City and Nashville to Lead U.S. in Hotel Room Openings in 2025

New York City and Nashville are projected to open the most hotel rooms in the U.S. in 2025, according to data from CoStar.  New York City is expected to add 5,719 rooms, while Nashville is projected to open 2,849 new rooms. These openings reflect continued investment in these markets, driven by strong performance and high occupancy rates in recent years.

Several other cities are also expected to see significant growth in hotel room inventory. San Diego is projected to open 2,818 rooms, followed by Dallas with 2,749 rooms, and Phoenix with 2,483 rooms. The U.S. is expected to open 953 hotels with a total of 108,366 rooms in 2025.

Despite the anticipated increase in openings, overall U.S. hotel construction activity was relatively muted at the end of 2024. High interest rates, restrictive lending standards, and elevated construction costs have kept construction volume below the levels seen in 2019. 

The Upper Midscale segment is expected to lead in room openings, accounting for nearly 34,000 new rooms in 2025. Looking ahead, projections indicate a further acceleration of hotel openings in 2026, with 1,865 hotels and 198,319 rooms expected to come online