The number of hotel rooms under construction in the United States is at a five-year low, according to data collected by the company CoStar. The publication Construction Dive reports that the number of rooms being built decreased 11.9 percent year over year in June.
While the exact data for Albemarle and Charlottesville is not available, one commercial real estate analyst said strong regional tourism explains why at least some new construction is being planned.
“There is still interest in the hotel sector, with notable projects of course being the upcoming AC downtown as well as extended stay projects such as the new Extended Stay America hotel that delivered this year on Berkmar Drive,” said Jenny Stoner, senior vice president at Cushman & Wakefield | Thalhimer.
The number of hotel stays in Albemarle and Charlottesville was about the same in the first four months of 2025 compared to the previous year, according to data shared by the local tourism office. The Charlottesville-Albemarle Conventions and Visitors Bureau reports occupancy at just above 70 percent in April, with an average daily rate of $190 per room.
In late May, the Charlottesville Board of Architectural Review granted design approval for a 156-room AC hotel at 218 W. Market St. on the site of Artful Lodger. The city must still sign off on a final site plan before the project can go to construction.
An Austin, Texas, company has filed a plan under the city’s new zoning to convert an office building at 116 W. Jefferson St. to a 12-room boutique hotel. The city has paused review of that application due to a legal halt of its zoning code. At some point, the BAR will need to take a look at the project.
Next spring, 214 rooms will come online at the Virginia Guesthouse, the new hotel and conference center under construction in the Emmet-Ivy Corridor. That will be operated by the University of Virginia Foundation, an entity that also runs the 168-room Boar’s Head Inn.
“More than just a place to stay, Virginia Guesthouse will serve as a ‘front door’ to the University, welcoming visitors from all over the world,” reads a description on its website.
Earlier this month, the Albemarle Architectural Review Board reviewed plans for a 122-room Hyatt Studio to be built on Pantops on Richmond Road. That project had initially been proposed in 2020 but was delayed.
Two rezoning applications filed with the county seek permission to build hotels. One would be an 80-room building at Hollymead Town Center, though that request is on hold. The other is to allow lodging as part of the Sieg property off of U.S. 29 south of Interstate 64.
