Dallas, Texas Led Hotel Construction Pipeline in Q2 2023

Portsmouth, NH, August 2, 2023-In Q2 2023, the five markets with the largest hotel construction pipelines are Dallas, Texas with a record-high 184 projects/21,501 rooms; Atlanta, Georgia with 141 projects/17,993 rooms; Phoenix, Arizona with 119 projects/16,107 rooms; Nashville, Tennessee with 116 projects/15,346 rooms; and Los Angeles, California with 112 projects/17,797 rooms, according to Lodging Econometrics.

The markets with the most projects currently under construction at the Q2 close are New York with 47 projects/8,201 rooms, and Phoenix with 29 projects/6,064 rooms. Dallas has the most projects scheduled to start in the next 12 months with 69 projects/8,045 rooms, followed by Atlanta with 66 projects/7,932 rooms, and the Inland Empire market with 48 projects/4,946 rooms. Markets with the most projects in early planning are also led by Dallas with 90 projects/10,104 rooms, Los Angeles with 52 projects/8,663 rooms, and Nashville with 51 projects/6,009 rooms.

LE recorded a combined renovation and conversion pipeline total of 1,939 projects with 253,473 rooms for the U.S. at the Q2 close. The markets with the largest combined number of renovations and conversions are Atlanta with 39 projects/4,232 rooms, Chicago with 36 projects/4,921 rooms, and Dallas with 33 projects/5,687 rooms.

At the close of Q2, the Inland Empire market has the largest number of new projects announced into the pipeline with 7 projects/791 rooms, followed by Tampa, Florida with six projects/986 rooms, and Nashville with 6 projects/803 rooms.

For the first half of 2023, the U.S. opened 224 new hotels/27,194 rooms with another 384 new hotels/48,607 rooms expected to open by year-end. Reflective of the current pipeline, L.E.’s forecast for new hotel openings will continue to rise through 2025.