This month, the Q2 2023 United States Construction Pipeline Trend Report by Lodging Econometrics (LE) revealed the latest stats on hotel industry growth. Among the five markets with the most extensive hotel construction pipelines, Dallas boasts 184 projects, resulting in 21,501 rooms. Other growth leaders include Atlanta, Georgia, with 141 projects equating to 17,993 rooms; Phoenix, Arizona, with an 119 projects and 16,107 rooms; Nashville, Tennessee, with 116 projects that will provide 15,346 rooms; and Los Angeles, California, with 112 projects for a total of 17,797 rooms.
These figures come from both current and planned construction projects. Dallas leads the count for projects scheduled to commence within the next 12 months, with 69 initiatives equating to 8,045 rooms. Atlanta follows closely with 66 projects, while the Inland Empire (surrounding Los Angeles) market has plans for 48 projects to begin construction. Markets in the initial stages of planning are also led by Dallas, which boasts 90 projects aiming for 10,104 rooms, distantly followed by Los Angeles with 52 projects and Nashville with 51 projects. Among renovation and conversion projects concluded by Q2, Atlanta stands out with 39 projects, trailed by Chicago, Illinois, with 36 projects and Dallas contributing 33 projects.
In the first two quarters of 2023, a total of 224 new hotels, totaling 27,194 rooms, were completed across the U.S. By year’s end, another 384 new hotels with a combined total of 48,607 rooms are projected to open. The top five markets for 2023 include two Texas cities: Topping the list is New York, boasting 42 projects and 7,192 rooms; followed by the Inland Empire market with 16 projects yielding 1,564 rooms; Austin contributing 14 projects and 2,021 rooms; Atlanta with 14 projects offering 1,369 rooms; and Dallas with 13 projects, resulting in 2,100 rooms.
Looking ahead to 2024, Dallas anticipates 19 projects delivering 2,159 rooms, third only to Atlanta and Phoenix. With 23 projects providing 2,343 rooms projected, Dallas is the second largest pipeline for 2025 behind Atlanta. Reflecting the current pipeline status, LE’s projections indicate a continuous rise in new hotel openings across the country, extending into 2025.
