Alabama Hotel Development, Construction & Transactions

Alabama has seen a notable wave of hotel openings over the past two years, with 10 properties delivering 1,554 new rooms across the state, heavily concentrated in the upscale and upper upscale segments. On the development side, Lodging Development currently tracks 19 projects totaling 2,208 rooms at various stages of planning and construction. Transaction activity has also been considerable, with 10 deals valued at $10 million or more generating an aggregate volume exceeding $205 million over the past 24 months.

Among the projects currently tracked by Lodging Development, the 120-room Hotel Indigo Huntsville - MidCity stands out as one of the largest upscale developments in the state. Being developed by ViaNova Development LLC, the project is currently in construction as of late 2025. Several extended-stay concepts are also advancing, including the 110-room LivSmart Studios Decatur from Southern Hospitality Services LLC and the 105-room Livsmart Studios by Hilton Mobile, developed by Wealth Hospitality Group, which moved into final planning in early 2026. RAM Hotels LLC is active with two projects: the 100-room StudioRes Montgomery in final planning and the 90-room Tru by Hilton Spanish Fort, now under construction. In total, the 19 projects tracked across Alabama represent 2,208 rooms at various stages of the development pipeline.

Alabama has welcomed 10 new hotels totaling 1,554 rooms over the past 24 months. The most recent opening is the 180-room dual-branded Residence Inn and Courtyard Birmingham Grandview, which opened in early March 2026. The largest property to debut during this period is the 257-room Embassy Suites Gulf Shores, an upper upscale resort that opened in the summer of 2025. Huntsville has been a particularly active market, highlighted by the 215-room Trilogy Hotel Huntsville, Autograph Collection, which opened in late October 2025, and the 212-room dual-branded Courtyard and Residence Inn Madison, which opened in early October 2025.

In recent transaction activity, Lodging Development has recorded 10 hotel sales of $10 million or more across Alabama over the past 24 months, with aggregate disclosed volume exceeding $205.5 million. Among the notable transactions, the 111-room Aloft Birmingham Soho Square traded in late September 2025 for $18.2 million, acquired by Birmingham Hotels II LLC. That same month, the 122-room Spark by Hilton Birmingham Colonnade sold for $11 million to the Stephen Siller Tunnel To Towers Foundation, a noteworthy buyer given its nonprofit mission. The Birmingham submarket has accounted for a meaningful share of recent deal flow, reflecting sustained investor interest in the state's largest metro area. These figures represent only transactions clearing the $10 million threshold.