In the third quarter of 2021, analysts at Lodging Econometrics (LE) report that the top five markets with the largest total hotel construction pipelines by projects are: Dallas with 147 projects/17,711 rooms, Atlanta with 139 projects/18,659 rooms, Los Angeles with 133 projects/22,145 rooms, New York City with 130 projects/22,417 rooms, and Houston, with 90 projects/9,225 rooms. These top five markets account for 13% of the projects and 15% of rooms in the total U.S. pipeline.
The top 25 U.S. markets account for 33% of all pipeline projects and 37% of all rooms in the U.S. hotel construction pipeline. There are currently nine markets in the United States that have 20 or more projects under construction in their pipelines. Markets with the greatest number of projects already in the ground are New York with 95 projects/16,516 rooms, Atlanta with 33 projects/5,311 rooms, Dallas with 31 projects/4,399 rooms, Los Angeles with 30 projects/4,954 rooms, and Austin with 28 projects/3,577 rooms. Atlanta has the greatest number of projects scheduled to start construction in the next 12 months, with 54 projects/7,529 rooms. Dallas follows with 48 projects/5,643 rooms, and then Los Angeles with 47 projects/7,343 rooms, Phoenix with 44 projects/4,834 rooms, and Houston with 42 projects/3,748 rooms. The top five markets with the greatest number of projects in the early planning stage at the end of the third quarter are Dallas with 68 projects/7,669 rooms, Los Angeles with 56 projects/9,848 rooms, Atlanta with 52 projects/5,819, Orlando with 41 projects/7,754 rooms, and Washington D.C. with 40 projects/7,310 rooms.
The increased demand for building materials and shortages in supply, in the wake of the COVID-19 pandemic, has led to higher prices and continues to be major hurdles for contractors, developers, and investors. Nevertheless, in the third quarter, Dallas has the highest number of new projects announced into the pipeline with 18 projects/1,756 rooms. Atlanta follows with 17 projects/1,777 rooms, Phoenix with 10 projects/1,819 rooms, and then Houston with 9 projects/946 rooms.
The renovation and conversion pipeline shows no sign of decline. Presently, there are 1,253 hotels/176,305 rooms under renovation or conversion across the U.S., and twenty-four of the top 50 markets in the U.S. currently have 10 or more hotels undergoing renovation or conversion activity at the end of Q3‘21.
In the first three quarters of 2021, the U.S. opened 665 new hotels with 85,306 rooms. The markets with the highest number of new openings throughout the first three quarters are New York City with 21 hotels/3,554 rooms, Atlanta with 21 hotels/2,925 rooms, Orlando with 19 hotels/2,908 rooms, Houston with 16 hotels/2,166 rooms and Nashville with 16 hotels/2,116 rooms. In Q3, alone, the top 50 markets in the U.S. saw 98 hotels /15,454 rooms open. The U.S. had 189 hotels/25,995 rooms total open in the third quarter.
In 2021, New York City is forecasted to open 51 new hotels and 7,074 rooms, Atlanta follows with 25 hotels/3,499 rooms, then Nashville with 23 hotels/3,011 rooms, Houston with 23 hotels/2,787 rooms, and Orlando with 21 hotels/3,393 rooms. U.S. supply growth is forecasted to be 2.0% in 2021 and is expected to remain the same into 2022.
Related Stories
Events Facilities | Apr 27, 2017
20-acre lagoon highlights $1.5 billion Paradise Park planned for Las Vegas
The Wynn Resorts board recently gave the go-ahead for the project, which may begin construction on its first phase as early as December.
Hotel Facilities | Apr 12, 2017
Hotels embrace place
Today’s hospitality environments emphasize unique, localized experiences to attract and engage guests.
Hotel Facilities | Apr 11, 2017
What can hotels learn from Airbnb?
This new kid on the hospitality block is actually an extension of a long-standing tradition of lodging alternatives that range from renting villas in Italy to choosing timeshare properties in Florida.
Reconstruction & Renovation | Mar 30, 2017
Waldorf Astoria New York to undergo massive renovation
Skidmore, Owings & Merrill and Pierre-Yves Rochon prepared the designs for what will be one of the most complex and intensive landmark preservation efforts in New York City history.
Hotel Facilities | Mar 14, 2017
Hotels are becoming the favored places for retailers and consumer products to bolster their brands
Several high-profile names have launched hospitality divisions, often with well-established management partners.
Hotel Facilities | Mar 9, 2017
Robots. 70’s Retro. Biophilia. Co-Living Spaces. Two leading architectural firms single out 18 trends for hospitality this year.
HKS and HBA even see a demand for hotels catering to “agritourism.”
Mixed-Use | Mar 1, 2017
New hotel and residential tower coming to San Francisco’s Transbay neighborhood
The ground-up development will feature 255 hotel rooms and 69 residential units.
Hotel Facilities | Feb 20, 2017
The future of hotel design: Human-centered
Change is inevitable and it impacts on everything, not least on the way we design.
Market Data | Feb 16, 2017
How does your hospital stack up? Grumman/Butkus Associates 2016 Hospital Benchmarking Survey
Report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Hotel Facilities | Feb 15, 2017
Morphosis redesigns Swiss hotel rooms as custom ‘aesthetic experiences’
The redesigned rooms focused on scale, color, tactility, unexpected form, and connections to the natural context.