In the ever-evolving landscape of the U.S. hospitality industry, the Q4 2023 U.S. Construction Pipeline Trend Report by Lodging Econometrics (LE) illuminates dynamic trends across key markets.
Dallas emerges as a powerhouse, taking the lead in the nation with a record-breaking 193 projects and 22,291 rooms, signaling robust growth and confidence in the hospitality sector.
Following closely is Atlanta, setting its own record with 151 projects and 18,730 rooms. Nashville joins the ranks with 123 projects and 16,148 rooms, followed by Phoenix with 122 projects and 15,977 rooms, and the Inland Empire with 116 projects and 11,649 rooms.
At the Q4 close, New York City maintains the highest number of projects under construction, with 44 projects and 7,338 rooms. Dallas follows with 28 projects and 3,607 rooms, then Atlanta with 25 projects and 4,279 rooms, Phoenix with 24 projects and 4,247 rooms, and finally, the Inland Empire with 22 projects and 2,275 rooms.
Dallas seems poised to maintain its momentum, leading in both projects scheduled to start in the next 12 months and early planning stages of the hotel construction pipeline. Other markets like Atlanta, Nashville, Inland Empire, Phoenix, and Los Angeles follow suit, indicating a dynamic landscape of upcoming projects.
Atlanta takes the lead in new projects announced in Q4 with 16 projects and 1,572 rooms, followed closely by Phoenix with 15 projects and 1,832 rooms, then Dallas with 14 projects and 1,706 rooms, Austin with 11 projects and 1,007 rooms, and Fort Worth/Arlington with 10 projects and 1,506 rooms.
The U.S. continues to witness strong renovation and conversion pipeline activity. Forty-three of the top 50 markets in the U.S. currently have 10 or more hotels undergoing renovation or conversion at the end of the quarter.
Atlanta leads the charge with a combined total of 33 projects and 3,903 rooms. Las Vegas, Dallas, Chicago, New York City, and Houston also contribute significantly to this trend, reflecting an industry focus on revitalizing existing structures.
Throughout 2023, the U.S. saw 474 hotel openings, adding 60,436 rooms to the U.S. supply total. The markets with the highest number of new openings through year-end are New York City, with 19 hotels and 4,308 rooms, and Atlanta, with 13 hotels and 1,279 rooms. And Inland Empire, with 11 hotels and 1,032 rooms. Phoenix has 10 hotels and 1,339 rooms, and Houston has 10 hotels and 1,327 rooms.
Looking ahead to 2024, the U.S. markets forecast to open the greatest number of new hotels is New York City, with 28 projects and 3,050 rooms; Dallas with 18 projects and 2,333 rooms, Phoenix with 17 projects and 3,070 rooms, Atlanta with 15 projects and 2,808 rooms, and the Inland Empire with 15 projects and 1,559 rooms.
In 2025, LE analysts expect the Inland Empire to open the most new hotels with 22 projects and 2,074 rooms, followed closely by Dallas and Atlanta, each with 21 projects. These forecasts provide valuable insights into the ongoing evolution of the U.S. hotel landscape.
About Lodging Econometrics (LE)
For over 25 years, Lodging Econometrics (LE) has been the industry-leading provider of global hotel intelligence and decision-maker contact information.
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