Lodging Econometrics (LE) reports that the fourth quarter of 2021 closed with Dallas leading U.S. markets with 152 projects and 18,180 guestrooms in its pipeline. The other top markets include Atlanta, New York, Los Angeles, and Houston. Dallas also leads the U.S. in projects scheduled to start in the next 12 months alongside Atlanta with 51 projects and 5,989 guestrooms.
Among the three U.S. markets that announced more than 10 new construction projects during 2021’s final quarter, Dallas was sandwiched by Miami and Orlando with 13 projects and 1,308 announced as well. The Texas city also comes in second behind New York among U.S. cities with the greatest number of projects already in the ground with 28 projects and 3,945 guestrooms.
In 2022, LE anticipates an average 2.1 percent growth rate for the top 25 markets in the country, which are projected to sink slightly to a growth rate of 1.9 percent in 2023. Markets currently topping the forecast for new hotel openings this year—20 hotels or more—are New York, Atlanta, Dallas, and Austin.
2021 wrapped with a total construction pipeline of 4,814 projects and 581,953 rooms—a decrease of 8 and 10 percent year-over-year (YOY), respectively. Despite these dips, projects in early planning continue an upward trajectory, reflecting an 18 and 11 percent boost for projects and rooms YOY, respectively, with a total of 2,021 projects and 239,816 guestrooms.
Projects scheduled to begin construction in the next 12 months stood at 1,821 projects and 210,890 guestrooms at the close of 2021, while projects under construction totaled 972 projects and 131,247 guestrooms. New project announcements, however, were down in the fourth quarter amid ongoing escalating inflation and supply chain shortages.
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