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News: Business + People|Development + Destinations
December 4, 2023

Dallas Once Again Leads U.S. Hotel Construction Pipeline

Lodging Econometrics provides a third quarter update for its 2023 trend report

Words by: Stephanie Chen

Dallas City skyline texas
The Dallas skyline; courtesy of Adobe Stock
The Dallas skyline; courtesy of Adobe Stock

News:

Business + People | Development + Destinations
December 4, 2023

Dallas Once Again Leads U.S. Hotel Construction Pipeline

Lodging Econometrics provides a third quarter update for its 2023 trend report

Words by: Stephanie Chen

The most recent Construction Pipeline Trend Report for the United States, compiled by Lodging Econometrics (LE), reveals the top five markets with the largest hotel construction pipelines by projects at the end of the third quarter.

The list is topped by Dallas, with an all-time high of 189 projects/21,840 rooms; followed by Atlanta, with 140 projects/17,775 rooms; and Nashville, with 122 projects/16,046 rooms. Next is Phoenix, with 119 projects/16,455 rooms; and the Inland Empire of Southern California, with 117 projects/11,784 rooms.

In the first three quarters of 2023, 345 new hotels with 41,115 rooms opened in the U.S. with another 182 hotels/24,790 rooms anticipated to open by the close of the year.

The markets with the highest openings through the third quarter are New York City (14 hotels/2,407 rooms), Atlanta (11 hotels/1,108 rooms), Detroit (10 hotels/1,292 rooms), Houston (eight hotels/1,154 rooms), and Austin (eight hotels/1,001 rooms).

The total U.S. construction pipeline stands at 5,704 projects/672,676 rooms, up 7 percent year-over-year by projects and rooms.

Additionally:

  • 1,063 projects/140,331 rooms are under construction at the close of the third quarter, up 8 percent for projects and 4 percent for rooms YOY
  • 2,234 projects/257,729 rooms are scheduled to start construction in the next 12 months, up 8 percent for projects and 9 percent for rooms YOY
  • 2,407 projects/274,616 rooms are in the early planning stage, each up by 7 percent YOY

Upper midscale projects have the highest count of all chain scales in the total U.S. construction pipeline, with a total of 2,149 projects/209,895 rooms at the end of the third quarter. Following is the upscale chain scale with 1,376 projects/170,943 rooms. Combined, these two chain scales comprise 62 percent of all projects in the total U.S. hotel construction pipeline. Meanwhile, extended stay projects accounted for 38 percent of projects in the total pipeline.

More from HD:
Little Goat Diner Sets up Shop in a Former Bowling Alley
The Hotel Scene in London is Booming
What I’ve Learned Podcast: Maryellis Bunn, Museum of Ice Cream

Business + People | Development + Destinations
Americas•New Builds•Urban Planning

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