LE: Sunbelt leads boom in top 50 US markets

NATIONAL REPORT — An analysis of the top 50 U.S. markets by Lodging Econometrics (LE) reveals dynamic growth and adaptability in the hotel construction industry. From the Sunbelt to revitalized urban centers in the Midwest and Northeast, these regions reflect development driven by innovation as well as shifting work, lifestyle and investment trends.

LE’s U.S. hotel construction pipeline in 2024 shows growth across key markets, reflecting broader economic resilience. Markets like Dallas and Atlanta are driving significant hospitality development.

“Historically, the pipeline cycle begins in the Sunbelt of the United States (southern tier) and then spreads to the north and then to the coasts,” said Bruce Ford, LE' senior vice president and director of global business development. “This seems to signal that we are entering a new phase of pipeline expansion in major areas.”

Through the third quarter of 2024, 36 of the top 50 markets announced five or more new hotel construction projects. Dallas, which reported 32 new projects and 4,150 rooms, leads the list, with Atlanta second with 31 new projects and 3,383 rooms. Orlando was third with 20 projects and 4,187 rooms. Other top performers included Indianapolis, Nashville and the Inland Empire in California, with each reporting 18 to 19 projects with room counts ranging from 1,783 to 2,269. Notably, 18 markets across the country announced 10 or more hotel projects.

There was also significant new activity in the third quarter of 2024, with 15 markets announcing five or more hotel projects and markets such as Dallas, Atlanta, Austin, Nashville and Fort Worth-Arlington leading this wave of expansion.

Overall, 215 new hotel projects entered the U.S. pipeline in 2024, representing 27,294 rooms. The third quarter proved particularly robust, with 68 projects and 8,015 rooms breaking ground. Markets like Phoenix, Chicago, Dallas and San Antonio have been key drivers of this momentum.

Through the third quarter of 2024, the top 50 markets in the U.S. added 181 hotels and 28,299 to their open and operating hotel count. Top markets like New York, Dallas, Inland Empire, Orlando and Austin totaled 55 hotels and 7,919 rooms.