Lodging Conference Executives Discuss Hotel Development Opportunities
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At the Lodging Conference held in Phoenix, hotel development executives discussed current development opportunities. The report said that although owners are under profit pressure and U.S. hotel net operating profit margin has fallen 20% since 2019, deals in 2026 are still moving forward. CoStar data show that new supply that year increased only 0.4% year over year, and conversions have become an important source of brand growth; the extended-stay category accounts for 38% of the U.S. new-build pipeline, and Hyatt recently updated the Hyatt Place and Hyatt Studios prototypes to reduce construction costs.
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- Hotel Dive FeedLodging Conference executives discuss hotel development opportunities: conversions and extended stay become growth priorities
At the Lodging Conference held in Phoenix, hotel development executives said that although owner profitability is under pressure and U.S. hotel net operating profit margins have fallen 20% since 2019, deals in 2026 are still moving forward. CoStar data show that new supply that year increased only 0.4% year over year, conversions have become an important source of brand growth; the extended-stay category accounts for 38% of the U.S. new-build pipeline, and Hyatt recently updated the Hyatt Place and Hyatt Studios prototypes to reduce construction costs.
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