According to the United States Construction Pipeline Trend Report by Lodging Econometrics (LE) for Q2 2023, the five markets with the largest hotel construction pipelines are Dallas with a record-high 184 projects/21,501 rooms, Atlanta with 141 projects/17,993 rooms, Phoenix with 119 projects/16,107 rooms, Nashville with 116 projects/15,346 rooms, and Los Angeles with 112 projects/17,797 rooms.
The markets with the most projects currently under construction at the Q2 close are New York with 47 projects/8,201 rooms, and Phoenix with 29 projects/6,064 rooms. Dallas has the most projects scheduled to start in the next 12 months with 69 projects/8,045 rooms, followed by Atlanta with 66 projects/7,932 rooms, and the Inland Empire market with 48 projects/4,946 rooms. Markets with the most projects in early planning are also led by Dallas with 90 projects/10,104 rooms, Los Angeles with 52 projects/8,663 rooms, and Nashville with 51 projects/6,009 rooms.
LE recorded a combined renovation and conversion pipeline total of 1,939 projects with 253,473 rooms for the U.S. at the Q2 close. The markets with the largest combined number of renovations and conversions are Atlanta with 39 projects/4,232 rooms, Chicago with 36 projects/4,921 rooms, and Dallas with 33 projects/5,687 rooms.
At the close of the second quarter, the Inland Empire market has the largest number of new projects announced into the pipeline with 7 projects/791 rooms, followed by Tampa with 6 projects/986 rooms, and Nashville with 6 projects/803 rooms.
For the first half of 2023, the U.S. opened 224 new hotels/27,194 rooms with another 384 new hotels/48,607 rooms expected to open by year-end. Reflective of the current pipeline, L.E.’s forecast for new hotel openings will continue to rise through 2025.
At Q2, the top 25 markets in the U.S. are forecast to open 40% of the rooms expected to open by year-end. Twenty-six percent of the new hotels forecast to open between now and 2023 year-end are concentrated within ten markets. Of these ten markets, those with the greatest number of new hotels forecast to open for all of 2023 are led by New York with 42 projects/7,192 rooms, followed by the Inland Empire market with 16 projects/1,564 rooms, Austin with 14 projects/2,021 rooms, Atlanta with 14 projects/1,369 rooms, and Dallas with 13 projects/2,100 rooms.
In 2024, Atlanta is forecast to top the list of new hotel openings with 20 projects/3,198 rooms, then Phoenix with 19 projects/3,480 rooms, and Dallas with 19 projects/2,159 rooms.
At this time, in 2025, Atlanta is anticipated to again lead in new hotel openings with 24 projects/2,829 rooms expected to open, followed by Dallas with 23 projects/2,343 rooms, and the Inland Empire market with 18 projects/1,844 rooms.
Related Stories
Mixed-Use | Jul 7, 2017
ZHA’s Mandarin Oriental hotel and residences employs ‘stacked vases’ design approach
The mixed-use tower will rise 185 meters and be located in Melbourne's Central Business District.
Hotel Facilities | Jul 5, 2017
It only took 26 days to complete construction on the Crowne Plaza Changi Airport hotel extension
PPVC techniques allowed the project to save time and manpower.
Hotel Facilities | Jun 29, 2017
Luxury, plant-covered hotel unveiled for site near the River Seine
Kengo Kuma is designing the hotel, which will feature a large garden and a plant-covered façade.
Hotel Facilities | Jun 28, 2017
This floating hotel in Sweden freezes in place during the winter
The hotel will feature a cold bath and be in a good location for viewing the northern lights.
Hotel Facilities | Jun 14, 2017
Finalists selected for Radical Innovation award
Original hospitality design concepts lean on enhancing traveler comfort and mobility.
Hotel Facilities | May 19, 2017
Beyond market niches: Designing hotels that can flex
There’s a shift from accommodating to specific market niches towards places that can adapt to changing moods and activities.
Hotel Facilities | May 18, 2017
Manchester modular hotel is constructed of shipping containers
The 220-room Holiday Inn Express hopes to be completed in less than 12 months.
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.