US Hospitality Cools While Global Hotel Development Surges

September brought a mix of booming global hotel news and a reality check for the U.S. hospitality sector. While resort brands continue to expand their all-inclusive portfolios worldwide, new reports reveal that American hoteliers are scaling back amid rising costs and uneven demand.

Globally, openings are on the rise. The Dreams Playa Esmeralda Resort & Spa debuted in the Dominican Republic with 500 family-friendly rooms alongside the adults-only Secrets Playa Esmeralda Resort & Spa. Hyatt will also add the 406-room Secrets Macao Beach Punta Cana next year, adjacent to a family-focused Dreams resort. Saudi Arabia’s Shura Island welcomed three new luxury properties—SLS Red Sea, EDITION Red Sea, and InterContinental Red Sea Resort—marking the first wave of an 11-resort development.

Renovations and rebrands are also making headlines. W New York – Union Square reopened after a $100 million overhaul, while Sandos Caracol in Playa del Carmen relaunched as Sandos Caracol Nature Resort & Water Park following extensive upgrades. In Florida, the Sunseeker Resort now operates under Hilton’s Curio Collection, giving Hilton Honors members new earning and redemption options.

Meanwhile, St. Vincent and the Grenadines is set to open four hotels within 36 months, including a Marriott Autograph Collection property and a Beaches resort, while Sports Illustrated Hotels announced a Chicago debut in 2026.

Yet, despite this global momentum, a September AHLA survey found 30% of U.S. hotels reporting drops in leisure stays and one-third delaying or scaling back investment plans, underscoring how inflation and weaker travel demand are straining domestic growth.

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