Why Do Some Hotel Projects Get Delayed?

Let’s be honest—when it comes to hotel development, not everything goes according to plan. Some new hotel buildings glide through approvals, permitting, and construction. Others . . . well, sometimes they end up taking an extended vacation.

At THP, we track thousands of hotel developments around the world, from brand-new concepts to hotel renovations, and everything in between. And yes, that includes the ones that hit a speed bump (or five). If you've ever wondered why some hotel projects stall—or how to spot the signs before they do (are there signs?)—read on!

Why Do Projects Get Put on Hold?

First, the obvious: money matters. Financing issues are one of the most common culprits. Whether it's a funding gap or a change in investor strategy, cash flow is often the reason a rendering of a new hotel construction stays just that—a rendering.

Then there’s all that red tape business. Zoning, permits, and other regulatory hurdles can drag out timelines, especially in regions with more complex approval processes.

And let’s not forget the wildcard: market conditions. Economic shifts, geopolitical instability, supply chain challenges (hello, delayed shipments of Italian marble), or changing tourism trends can all hit the pause button on even the most promising hotel openings.

Can We Predict Project Delays?

In short: not really. At least, not with complete certainty.

While we do spot patterns in project data that might suggest a hotel development is slowing down, predicting a delay or cancellation isn't an exact science. A project that seems inactive for months (or even years) might suddenly spring back to life. Others that appear to be moving full speed ahead can hit the brakes for an unexpected pause.

That said, there are a few signs that could indicate a possible stall:

• Extended periods without updates
• Repeated pushbacks in estimated construction start dates
• A project that hangs out in "Planning," "Pre-planning," or “Vision” for years without progress

But—and this is important—even these indicators don’t always mean a project is in trouble. In some markets or ownership structures, longer planning phases are completely normal. Sometimes the lack of updates simply reflects a quieter hotel phase behind the scenes, not a problem.

So, while we can use data to make educated guesses, they’re just that: guesses. Our job at THP is to give you the tools and transparency to track those movements (or non-movements) so you can stay informed and react quickly, no matter what happens next.

Understanding Our Construction Filter Phases

While working in our THP database, our Constructions segment doesn’t just show where a project is—it shows where it’s heading. Here’s a quick overview:

• Vision | The earliest concept phase. This is the spark of an idea. Perhaps a quickly scribbled note on a Post-it. This is where the idea starts to form and grow.
• Pre-planning | In this phase, a project begins to take shape. Think early designs, securing stakeholders, and cost estimation work.
• Planning | This is where pre-planning becomes actionable. Cost estimates are finalized, HOAI service phases kick in, and interior designers join the project. Site, landscape, and technical planning take shape.
• Under Construction | Construction has officially begun. While the hotel takes physical shape, key roles like general contractors and consultants emerge. This phase continues in our system until Pre-Opening starts, even if the finishing touches are still underway.
• Pre-Opening | The final countdown. Roughly six months before opening, we add address and contact info to the project. The Pre-Opening Office becomes an essential point of contact.
• Opened | The big day has come. The hotel is officially welcoming guests, the team is in place, and the project is complete in our system.

Each phase gives you valuable insight into where a project stands, who to contact, and when to get involved—whether you're tracking new hotel developments, hotels under construction, or preparing to supply products for a hotel opening.

Stay Ahead of the Delays

Don’t want to miss when a project moves from “Planning” to “Under Construction”? THP clients can add projects to their Favorites list. That way, when there’s an update, you’ll be the first to know via email.

It’s like having a construction whisperer in your inbox!

The Bottom Line

Delays happen. But with the right data, you can catch early signs and stay focused on the hotel projects that matter most. Whether you're tracking hotel openings, hotel news, new hotel developments, or planning your next move in the hotel industry, THP’s platform keeps you ahead.

Looking for real-time updates? Visit THP.News for the latest hotel news on what’s moving, what’s stuck, and what’s coming soon.