US REITs and Lodging: June Hotel Rooms Supply Expands 14bps; Pipeline Continues to Slow

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US REITs and Lodging: June Hotel Rooms Supply Expands 14bps; Pipeline Continues to Slow

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10 Jul 2026 14:15:28 ET │ 13 pages

US REITs and Lodging

June Hotel Rooms Supply Expands 14bps; Pipeline Continues to Slow

CITI'S TAKE

Nick Joseph AC

STR provided its June development pipeline. Rooms supply expanded a +1-212-816-1909

modest 14bps y/y; we calculate 127bps is comprised of growth in the nicholas.joseph@citi.com

installed base while (113)bps contraction is driven by attrition and room

closures. The year-over-year pace of growth declined from 29bps in May Smedes Rose

and 38bps in April, and the existing rooms were flat to May. STR estimates +1-212-816-6243

full-year 2026 supply growth at +0.4% (+0.7% in 2025). Room closures smedes.rose@citi.com

have slowed to more normal attrition levels (50-100bps annually). The

planning portion of the pipeline increased year-over-year by 360bps after Leo Carrington

several months of contraction/modest increases. We continue to anticipate +44-20-7986-0811

high attrition levels (~50%) and heightened levels of deferred or abandoned leo.carrington@citi.com

projects given elevated construction costs and the current lending

environment. These factors are likely to be exacerbated by policy and macro Lauren R McNichol

uncertainty. We also spotlight progress for newer brand introductions in the lauren.rose.mcnichol@citi.com

extended stay space (Fig 1).

Sydney McEntee

sydney.mcentee@citi.com

Construction Overview — Year-over-year, rooms moving from planning to

construction increased +2.3%, a ~110bps sequential increase. The pipeline (under

construction or in-planning) decreased -4.0% y/y (-10bps decrease sequentially) to

725K rooms. In June, an additional 36 hotels (4.7K rooms) were deferred, which is