The latest insights from Lodging Econometrics reveal a remarkable surge in U.S. hotel development during the third quarter, marking a new high in planned projects. A total of over 6,200 hotel projects are currently in the works, reflecting a significant 9% increase from the previous year. This ambitious growth translates to an impressive total of more than 722,800 guest rooms anticipated across these developments, signaling a continued revitalization within the hospitality sector.
Among the cities driving this growth, Dallas emerges as a clear frontrunner, boasting the highest number of hotels in development. Throughout the third quarter, Dallas was home to 194 projects encompassing upwards of 22,800 guest rooms. This trend has persisted since mid-2021, when it overtook New York City’s previous lead. The sustained interest in Dallas as a prime location for new hotels underscores not only the city’s economic vitality but also an increasing demand for hospitality services.
Diving deeper into the numbers, by the end of the third quarter, 1,185 hotel projects were already under construction, reflecting an 11% year-over-year increase in count and a 6% rise in associated room numbers, indicating a robust pace of construction activity. Notably, over 2,200 additional projects are scheduled to commence within the next twelve months, amounting to 322,300 guest rooms—a staggering 17% increase in both metrics. This steady climb highlights the hotel development sector’s resilience and adaptability in navigating economic fluctuations.
A significant shift is occurring within the types of hotel projects being planned, with upscale and upper midscale classifications accounting for approximately 60% of the total pipeline. Furthermore, the development of midscale projects has risen by 19%, complemented by a 16% increase in midscale rooms. These trends suggest a strategic pivot towards offering more affordable accommodations without compromising quality, catering to a broader range of travelers.
Following Dallas, Atlanta ranks second in hotel development activity, with 166 projects totaling nearly 19,200 rooms in the pipeline. Nashville is also emerging as a competitive player, reporting 130 new properties with close to 17,000 rooms planned. This expanding competitive landscape illustrates a vibrant hospitality market across several U.S. cities, each vying for a share of the booming travel and tourism industry.
The robust hotel development pipeline in the U.S. signifies a thriving hospitality sector primed for growth and innovation. With data reflecting a collective effort across cities like Dallas, Atlanta, and Nashville, the landscape of hotel offerings is rapidly evolving to meet the dynamic needs of diverse guests. As this upward trajectory continues, stakeholders in the travel and tourism industry can anticipate exciting developments that promise enhanced guest experiences and elevated service standards.