Southern markets drive US hotel construction

NATIONAL REPORT — Dallas continues to lead the U.S. in hotel construction pipeline, according to year-end data from Lodging Econometrics.

The Dallas market leads the nation's hotel construction pipeline with 193 projects and 23,720 rooms. Atlanta is second with 159 projects and 17,804 rooms, Phoenix is third with 124 projects and 16,303 rooms, Nashville is fourth with 120 projects and 15,983 rooms, and Austin is fifth with 120 projects and 14,120 rooms.

Phoenix leads the projects under construction part of the pipeline with 35 projects and 4,829 rooms, followed by Dallas with 34 projects and 3,663 rooms, New York with 29 projects and 5,689 rooms, Miami with 24 projects and 4,843 rooms and Atlanta with 21 projects and 2,206 rooms.

Dallas continues to lead with the largest number of planned construction starts in the next 12 months, with 74 projects and 8,202 rooms, with Atlanta second with 58 projects and 6,658 rooms, followed by Austin (51 projects/5,499 rooms), the Inland Empire in California (44 projects/4,467 rooms) and Nashville (42 projects/5,981 rooms).

Dallas also leads in projects in the early-planning stages with 85 projects and 11,855 rooms, followed by Atlanta (80 projects/8,940 rooms), Nashville (59 projects/7,648 rooms), the Inland Empire (59 projects/5,908 rooms) and Orlando (51 projects/10,777 rooms).  These project counts underscore substantial activity in the U.S. hotel sector, particularly in the South and Southwest.

Hotel renovation and conversion activity remains steady across the U.S. through the end of the year, with prominent World Cup markets Houston and Atlanta leading with 35 projects each and 5,411 and 4,314 rooms, respectively. Washington, D.C. has 34 projects and 3,963 rooms, followed by Chicago with 29 projects and 5,397 rooms, and New York with 28 projects and 7,293 rooms.

The fourth quarter saw 285 new project announcements nationwide, with Phoenix leading with 12 projects and 1,347 rooms, followed by Atlanta (8 projects/854 rooms) and St. Louis (7 projects/725 rooms), followed by Tampa (6 projects/664 rooms) and the Inland Empire (5 projects/535 rooms).

Looking ahead to 2026, Phoenix is forecast to lead with new openings (23 hotels/3,326 rooms), followed by New York (22 hotels/3,795 rooms), Dallas (19 hotels/2,295 rooms), Austin (13 hotels/1,738 rooms), and the Inland Empire (12 hotels/1,024 rooms).

LE's extended forecast shows continued growth, with new hotels in 2027, led by Dallas with 37 new hotels and 3,198 rooms, followed by Atlanta (28 hotels/2,554 rooms), the Inland Empire (18 hotels/1,693 rooms), Phoenix (17 hotels/2,078 rooms) and Los Angeles (15 hotels/1,769 rooms).