According to Lodging Econometrics' "Q1 2022 U.S. Construction Pipeline Trend Report," Dallas leads all U.S. markets in the number of pipeline projects with 165 hotels with 19,730 rooms.
Following Dallas, the U.S. markets with the largest hotel construction pipelines by project count are Atlanta, with 135 hotels with 17,646 rooms; Los Angeles with 123 hotels with 20,176 rooms; New York with 122 hotels with 20,864 rooms; and Phoenix, with 103 hotels with 13,820 rooms.
Markets with the greatest number of projects already under construction are New York, with 90 hotels with 14,710 rooms, and Dallas, with 25 hotels with 3,698 rooms. Following Dallas, Atlanta has 25 hotels with 3,928 rooms, Austin has 25 hotels with 3,381 rooms, and Los Angeles has 21 hotels with 3,489 rooms presently under construction. These five markets collectively account for 19 percent of the total number of projects currently under construction in the U.S.
At the end of Q1, Dallas has the most projects scheduled to start in the next 12 months, with 56 hotels and 6,537 rooms. Behind Dallas are Atlanta with 54 hotels and 7,133 rooms; Houston, with 46 hotels and 4,690 rooms; Los Angeles with 45 hotels and 6,806 rooms; and Phoenix, with 44 hotels and 4,944 rooms.
Dallas also has the most projects in early planning, at the end of Q1, with 84 projects and 9,495 rooms. Los Angeles follows with 57 projects and 9,881 rooms. Next is Atlanta with 56 projects and 6,585 rooms, Nashville with 48 projects and 5,635 rooms and Orlando with 42 projects and 7,204 rooms.
LE recorded totals of 1,420 projects/184,692 rooms in the renovation and conversion pipeline during the first quarter of 2022. The markets with the largest count of renovation and conversion projects combined are Chicago, with 29 hotels and 3,985 rooms; Houston, with 28 hotels and 3,116 rooms; Atlanta, with 22 hotels and 3,385 rooms; Dallas, with 21 hotels and 2,370 rooms; and Washington D.C., with 20 hotels and 4,275 rooms.
The top 50 markets saw 70 hotels with 8,390 rooms open in the first quarter of 2022. LE is forecasting these same 50 markets to open another 386 hotels with 51,811 rooms throughout the year, for a total of 456 hotels with 60,201 rooms by year-end 2022 for a growth rate of 2.3 percent. In 2023, 420 projects accounting for 51,519 rooms are forecast to open within the top 50 markets, with a 1.9 percent growth rate.
Of the top 50 markets in the U.S., New York has the greatest number of new hotel openings forecasted for 2022 with 77 hotels with 10,934 rooms, for a 9 percent growth rate. Then Austin, which is forecasted to open 26 hotels with 3,387 rooms for a 7.4 percent growth rate, Atlanta with 20 hotels with 2,165 rooms for a 1.9 percent growth rate, Los Angeles with 19 hotels with 3,330 rooms for a 3.1 percent growth rate, and Detroit with 18 hotels with 1,935 rooms for a 4.1 percent growth rate.