Dallas leads the nation with a record-breaking 193 hotels with 22,291 rooms under construction—evidence of Dallas’s robust growth and confidence in the hospitality sector, according to Lodging Econometrics's Q4 2023 U.S. Construction Pipeline Trend Report. Following closely is Atlanta, setting its own record with 151 hotels and 18,730 rooms. Nashville joins the ranks with 123 hotels and 16,148 rooms, followed by Phoenix with 122 hotels and 15,977 rooms and the Inland Empire region of California with 116 hotels and 11,649 rooms.
At the Q4 close, New York City continues to have the greatest number of hotels under construction with 44 hotels and 7,338 rooms. Dallas follows with 28 hotels and 3,607 rooms, then Atlanta with 25 hotels and 4,279 rooms, Phoenix with 24 hotels and 4,247 rooms and the Inland Empire with 22 hotels and 2,275 rooms.
Dallas looks set to maintain its momentum; leading both projects scheduled to start in the next 12 months and early planning stages of the hotel construction pipeline. Other markets like Atlanta, Nashville, Inland Empire, Phoenix, and Los Angeles follow suit, signifying a dynamic landscape of upcoming projects.
Atlanta takes the lead in new projects announced in Q4 with 16 hotels and 1,572 rooms, followed closely by Phoenix with 15 hotels and 1,832 rooms, then Dallas with 14 hotels and 1,706 rooms, Austin with 11 hotels and 1,007 rooms and then Fort-Worth/Arlington with 10 hotels and 1,506 rooms.
The U.S. continues to witness strong renovation and conversion pipeline activity. Forty-three of the top 50 markets in the U.S. currently have 10 or more hotels undergoing renovation or conversion at the end of the quarter. Atlanta leads the charge with a combined total of 33 hotels/3,903 rooms. Las Vegas, Dallas, Chicago, New York City and Houston also contribute significantly to this trend, reflecting an industry focus on revitalizing existing structures.
Throughout 2023, the U.S. had 474 hotel openings that added 60,436 rooms to the U.S. supply total. The markets with the highest number of new openings through year-end are New York City with 19 hotels/4,308 rooms, Atlanta with 13 hotels and 1,279 rooms, Inland Empire with 11 hotels and 1,032 rooms, Phoenix with 10 hotels and 1,339 rooms and Houston with 10 hotels and 1,327 rooms.
Looking ahead to 2024, the U.S. markets forecast to open the greatest number of new hotels are New York City with 28 hotels and 3,050 rooms, Dallas with 18 hotels and 2,333 rooms, Phoenix with 17 hotels and 3,070 rooms, Atlanta with 15 hotels and 2,808 rooms and the Inland Empire with 15 hotels and 1,559 rooms. In 2025, LE analysts expect the Inland Empire to open the most new hotels with 22 hotels and 2,074 rooms, followed closed by Dallas and Atlanta, each with 21 projects.