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
Casinos | Jan 30, 2016
Boston ends its opposition to a casino, Wynn to build $1.7B resort
A judge’s ruling last year paved the way for Wynn Resorts to begin construction on a 33-acre gambling palace in Everett, Mass.
Resort Design | Jan 26, 2016
Atlantis planning to build the world’s most expensive resort in Hawaii
The project was first announced in 2005 but has progressed little since.
Hotel Facilities | Jan 19, 2016
8 trends sparking the hospitality sector
Hotels and restaurants are branching out to attract more customers—and hold onto them longer.
| Jan 14, 2016
How to succeed with EIFS: exterior insulation and finish systems
This AIA CES Discovery course discusses the six elements of an EIFS wall assembly; common EIFS failures and how to prevent them; and EIFS and sustainability.
Hotel Facilities | Jan 13, 2016
Hotel construction should remain strong through 2017
More than 100,000 rooms could be delivered this year alone.
Urban Planning | Jan 4, 2016
The next boomtown? Construction and redevelopment sizzle in San Diego
The city's emission-reduction plan could drive influx into downtown
Hotel Facilities | Dec 14, 2015
Greater Fort Lauderdale is enjoying a building boom
This business-friendly South Florida market has several large hotel and multifamily projects in construction.
Greenbuild Report | Dec 14, 2015
Sensible sustainability: The new standard for hotels
In October 2008, The Proximity, a 147-room hotel in Greensboro, N.C., became the first LEED Platinum–certified hotel in the U.S. Since then, only two other hotels have earned LEED Platinum.
Multifamily Housing | Dec 7, 2015
Are long-term apartment rentals Airbnb’s next target?
Some developers are thinking about that possibility, says one West Coast real estate consultant.
Architects | Oct 27, 2015
Top 10 tile trends for 2016
Supersized tile and 3D walls are among the trending tile design themes seen at Cersaie, an exhibition of ceramic tile and bathroom furnishings held in Bologna, Italy in October.
