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Hotel construction is up and sports tourism is a big reason, although the business travel market, including educational conferences, trade shows and conventions, are in play as well.
In fact, all those types of travel (classified loosely as group travel) are driving the market forward, and are expected to help shore up other areas.
According to an article in CoStar.com, Kelsey Fenerty, manager of analytics at STR, said at the Hotel Data Conference that the next full year will be “pivotal” as different forces come into play.
While short-term rentals such as Airbnb compete for the leisure traveler's dollars, the sports travelers, business travelers and guests in corporate groups are unlikely to leave hotels, Fenerty said. Additionally, it was noted, group travel is primarily within the U.S., whether it is sports, business, educational or expo related. (Expect increased inbound international sports tourism when FIFA’s Club World Cup and World Cup come to U.S. markets over the next two summers, however.)
The only predicted slowdown for 2025 was in leisure travel, with consumers becoming more price conscious. Group travel (including sports tourism) is acting as a counterbalance to that.
In fact, notes HotelDive, “in the final months of 2024, the U.S. hotel construction pipeline climbed to a new historic level.” The total pipeline reached a high of 6,378 projects, representing some 746,986 rooms, in the fourth quarter of the year, according to Lodging Econometrics’ latest Hotel Construction Pipeline Trends Report.
Some of the strongest markets were Dallas, Atlanta, Nashville, Phoenix, New York City and California’s Inland Empire.
Lodging Econometrics anticipates that 730 new hotels, with 82,538 rooms, will open in 2025. This would correlate to a 1.5% increase in supply year over year in 2025. Growth will accelerate further in 2026, with 904 new hotels and 97,328 rooms scheduled to open, Lodging Econometrics forecasted.
Here’s something else interesting: According to a report by STR late last year, the volume of U.S. hotel rooms under construction in 2024 continued to build on the numbers from 2023.
“Growth in rooms in construction has accelerated over the last seven months,” said Isaac Collazo, STR’s VP, analytics. “ Upscale and upper midscale continue to account for about 50% of all rooms in the final phase of the pipeline, while luxury and midscale showed the highest growth in rooms in construction, up 48.5% and 34.5%, respectively.”
Every event owner knows that while travelers for sports events are generally interested in lodging options in a variety of price points, there are many cases where there is a marked preference for a specific type of property.
Cvent notes that “The growth of extended stay hotels has reached a record high in recent years as more and more travelers look for safe, comfortable lodging, great atmospheres, and affordable rates.”
Extended stay properties are wildly popular among youth sports tourism groups, since they have amenities that generally include kitchenettes, pools, gyms, breakfast buffets, free parking, onsite DIY laundry facilities and business centers; some may provide even more facilities, such as dog parks.
Some may be suite-style properties, with two queen or king beds and a foldout sofa, as well as an additional sink outside the bathroom. Alternatively, extended stay hotels may lean more toward luxury experiences (with lounges and 24/7 guest services).
Either way, extended stay properties are in demand among sports tourism groups, who appreciate the presence of the extra amenities, particularly over the course of a long tournament.
Another interesting trend has been the uptick in the construction of new hotel brands, many of which are targeted to travelers looking for specific ambience or experiences.
“Well-established and upstart hotel companies alike are on an unprecedented streak of rolling out new brands, whether entirely new collections or newly curated portfolios of existing hotels,” noted Condé Nast. “While each offers a distinctive experience, all these brands tend to share the same obsessions: minimalist design, impressive artwork, thoughtful food and drink options and a commitment to highlighting local culture. The moves are about more than just targeting Millennial guests, say industry watchers.”
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