The latest U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals significant growth in hotel construction activity, marking a dynamic start to 2024.
At the close of the first quarter, Dallas leads the pack as the top market with 185 projects and 21,882 rooms, closely followed by Atlanta, which achieved an all-time high of 153 projects with 17,929 rooms. Nashville, Phoenix, and the Inland Empire also boast impressive figures, setting new records in hotel construction.
In terms of projects already under construction, New York takes the lead with 47 projects and 7,655 rooms, followed by Dallas and Nashville. Meanwhile, Dallas emerges as the frontrunner for projects scheduled to start in the next 12 months, with 77 projects and 9,269 rooms.
Nationally, the report highlights a surge in early planning projects, reaching an all-time high of 2,662 projects and 300,686 rooms. Dallas maintains its dominance in this category, closely trailed by Atlanta and Nashville.
During the first quarter of 2024, 105 new pipeline projects, totaling 10,219 rooms, were announced across the top 25 U.S. markets. New York, Orlando, and Atlanta lead the pack in new project announcements, showcasing robust growth in hotel development.
Renovation and brand conversion activities also witnessed an uptick, with a total of 2,041 projects and 266,405 rooms in the pipeline. Los Angeles leads in this category, followed by New York, Atlanta, and Chicago.
In terms of hotel openings, 114 new hotels with 15,506 rooms debuted in the U.S. during the first quarter. Looking ahead, LE forecasts an additional 255 projects and 30,502 rooms to open in the top 50 markets by the end of 2024.
New York City is poised to lead the new hotel openings chart in 2024, followed by Dallas, the Inland Empire, Atlanta, and Orlando. Looking further ahead to 2025, analysts anticipate Atlanta to take the lead in new hotel openings, with Dallas, Houston, Phoenix, and New York also emerging as key players in the market.
Overall, the U.S. hotel construction pipeline reflects robust growth and resilience, signaling optimism for the hospitality sector’s recovery and expansion in the coming years.
