The global hotel construction pipeline reached a record 15,976 projects and 2.43 million rooms under development in the second quarter of 2026, according to Lodging Econometrics. Luxury and upper-upscale development, in particular, continue to gain momentum, with both segments reaching record project totals.
The luxury segment hit an all-time high of 1,385 projects and 257,947 rooms, up 8 percent by project count and 3 percent by room count year over year. Upper-upscale hotels also reached record levels, with 1,923 projects and 396,483 rooms, representing year-over-year increases of 8 and 4 percent, respectively.
Elsewhere, the upscale segment reached a record 3,918 projects totaling 659,976 rooms, while upper-midscale development climbed to 4,632 projects and 578,432 rooms, up 1 and 3 percent year over year by project count, respectively.
A positive sign for meetings demand
The renewed growth of luxury and upper-upscale development eventually could help address an ongoing challenge for meeting planners: a shortage of full-service hotel inventory with significant meetings space.
In recent years, relatively few new luxury and upper-upscale hotels have been under development, raising concerns about future supply as demand for events rebounded. Many of the hotels added during that period were focused on economy and extended-stay segments, which typically offer limited meeting facilities.
If the current wave of luxury and upper-upscale projects comes to fruition, planners can expect more meeting-ready inventory in the years ahead. Those segments generally include larger public spaces, more food-and-beverage outlets and dedicated event facilities.
The U.S. remains the largest market
The United States continues to lead global development activity, accounting for 5,975 projects and 703,001 rooms under development, or 37 percent of all projects worldwide. China follows with 3,588 projects and 632,256 rooms. Together, the two countries account for 59 percent of all projects in the global pipeline.
However, CoStar Group data shows a mixed picture within the United States. Luxury development has expanded, growing to 24,553 rooms in the pipeline from 20,675 rooms in 2019. Upper-upscale development, meanwhile, has declined from 64,410 rooms in 2019 to 60,791 rooms in 2026.
Why full-service projects take longer
According to Jan Freitag, national director of hospitality analytics for CoStar, the economics of hotel development help explain why luxury and upper-upscale projects often advance more slowly than other segments.
Building a full-service hotel requires significantly more capital and time than developing a limited-service property. Large convention-oriented and luxury brands, such as JW Marriott, can take years to complete, creating a substantial barrier to entry for developers.
“We’ve seen a pretty healthy trading of full-service hotels, the Ws, the JW Marriotts. Those types of properties have been on investors’ minds,” Freitag said. “But, because they are so hard and expensive to build, if you want to participate in the industry tomorrow, you have to buy.”
Still, Freitag said it is reasonable to expect additional meeting space to be available if more of the luxury and upper-upscale projects currently in the pipeline are completed.
