New York City is expected to see 5,719 new hotel rooms becoming available this year as the city continues to lead the hospitality market in the United States in new openings as well as occupancy rates, says a report published by hospitality industry tracking firm CoStar.

In its monthly appraisal of the market in the United States, CoStar says that the industry has continued to invest for the long-term in New York City. It adds that besides NYC, among the US markets, Nashville is projected to open the most hotel rooms in 2025 with 2,849 rooms and closely followed by San Diego, with 2,818 rooms. Completing the top five cities are Dallas with 2,749 rooms and  Phoenix with 2,483 rooms set to open this year.

“The ongoing development in New York City is not surprising given the market’s status and its high performance in recent years. With major sources of leisure and business travel, New York reported the highest occupancy level of any US market in both 2023 and 2024. Though less rooms are in construction compared to 2023, there are more rooms in the planning and final planning stages, pointing to continued investment in the long term,” says Isaac Collazo, Senior Director, Analytics.

Isaac Collazo

“Nashville is in a similar situation, with most rooms set to open across the Upper Midscale and Upscale classes this year. Unlike NYC, Nashville’s construction total is up from last year,” Collazo adds.

CoStar adds that the hotel industry in the US is expected to accelerate its development pipeline in the years 2025 and 2026, reflecting the rising demand for hotels in key locations.

According to the report, the United States saw 721 hotel openings in the year 2024, with 73,682 rooms and in the current year, the numbers are expected to rise in both the counts, as 953 hotels are expected to open this year, bringing with them 108,366 rooms and this is expected to gain further momentum as the year 2026 is expected to see 1,865 hotel openings with 198,319 rooms coming online.

“At the end of 2024, overall US hotel construction activity was pretty muted with many projects remaining on the sidelines, as evidenced by the large gains in the planning stages. Restrictive capital and lending standards, along with high interest rates and construction costs, will keep construction volume well below the high seen in 2019 for some time. The US is expected to open nearly 34,000 Upper Midscale rooms in 2025, the same segment that currently leads the in-construction room count,” says Collazo.