The latest report from Lodging Econometrics shows continued growth in Latin America’s hotel development sector, with the total construction pipeline reaching 755 projects and 113,663 rooms in the first quarter of 2026.
This represents a 6% year-on-year increase in projects and a 1% rise in rooms, highlighting steady expansion across the region.

Strong Construction Activity Across All Stages
At the end of Q1, 300 projects comprising 50,139 rooms were under construction, reflecting a 5% increase in projects compared to the previous year.
A further 189 projects (28,347 rooms) are scheduled to begin construction within the next 12 months, while 266 projects (35,177 rooms) remain in early planning stages. Early-stage development showed particularly strong growth, rising 12% in projects year-on-year.

Luxury And Upper Midscale Segments Lead Growth
The pipeline is dominated by several key segments, with the luxury category leading at 142 projects and 26,590 rooms.
The upper midscale segment is also expanding rapidly, with 139 projects and 18,660 rooms, posting significant year-on-year growth of 28% in projects and 33% in rooms.
Upscale developments follow closely, with 135 projects and nearly 20,000 rooms.

Mexico, Brazil And Dominican Republic Dominate
Mexico leads the region with 247 projects and 36,646 rooms, accounting for one-third of all developments.
Brazil ranks second with 132 projects and 18,172 rooms, showing strong growth of 18% in projects and 20% in rooms.
The Dominican Republic follows with 84 projects and 18,014 rooms.
Together, these three countries represent 61% of all projects and 64% of total rooms in the pipeline.

Key Cities Show Accelerated Development
Major urban centres are also seeing increased activity, led by Mexico City with 29 projects, followed by Lima and Georgetown.
All three cities reported notable growth in both projects and room counts, reflecting rising demand in both business and leisure travel markets.

Renovations And Openings Remain Strong
Renovation and conversion projects remain a significant component of the market, accounting for 150 projects and 25,788 rooms, up 9% year-on-year.
In terms of openings, 14 new hotels launched in the first quarter of 2026, with forecasts indicating a total of 104 new hotels and nearly 18,000 rooms expected to open by the end of the year.
Looking ahead, the pipeline remains robust, with 115 additional hotels projected to open in 2027.

Steady Growth Despite Market Challenges
The data reflects continued confidence in Latin America’s hospitality sector, driven by tourism demand, urban expansion and investment in diverse market segments.
While growth in room numbers remains modest, the steady increase in projects signals sustained long-term development across the region.