Summary:
- Dallas leads hotel construction with 199 projects and a record 24,497 rooms, followed by Atlanta, Nashville, Austin, and Phoenix, according to LE.
- U.S. renovation and conversion projects totaled 1,956 projects and 259,495 rooms at the end of Q2.
- Phoenix is forecast to lead 2026 openings with 27 hotels; Dallas is projected to lead 2027 with 35.
THE TOP FIVE hotel construction markets are led by Dallas with 199 projects and a record 24,497 rooms, according to Lodging Econometrics. LE forecasts the city will maintain its lead into 2027.
Following Dallas are Atlanta with 165 projects and 19,027 rooms, Nashville with 128 projects and 17,025 rooms and Austin with 125 projects and 14,598 rooms, both project and room totals at record highs. Phoenix ranks fifth with 123 projects and 16,228 rooms, LE said.
LE’s “Q2 2025 U.S. Hotel Construction Pipeline Trend Report” shows all five markets had year-over-year growth in the second quarter, led by Austin with a 10 percent increase in projects and 7 percent in rooms.
The five U.S. markets with the most projects under construction at the end of the second quarter were Phoenix with 35 projects and 5,089 rooms, New York City with 33 projects and 6,118 rooms, Dallas with 32 projects and 3,804 rooms, Atlanta with 23 projects and 2,782 rooms and Nashville with 20 projects and 2,739 rooms.
Dallas leads in projects scheduled to start in the next 12 months with 78 projects and 8,603 rooms, followed by Atlanta with 65 projects and 7,942 rooms, Austin with 53 projects and 6,009 rooms, Nashville with 52 projects and 7,333 rooms and Inland Empire with 51 projects and 5,184 rooms.
Dallas also leads in early planning projects at the end of the second quarter, with 89 projects and 12,090 rooms. Atlanta follows with 77 projects and 8,303 rooms, then Nashville with 56 projects and 6,953 rooms. Rounding out the top five are Orlando and Austin, each with 54 projects, totaling 13,329 and 6,033 rooms, respectively.
At the end of the second quarter, U.S. renovation and conversion projects totaled 1,956 active projects with 259,495 rooms. The leading markets were Washington, DC with 34 projects and 4,889 rooms, Atlanta with 30 projects and 3,370 rooms, Charlotte with 29 projects and 3,343 rooms, Orlando with 27 projects and 14,722 rooms and New York with 27 projects and 8,288 rooms.
According to LE analysts, 329 hotels with 39,628 rooms opened in the U.S. during the first half of 2025. Atlanta led with 11 projects and 1,191 rooms, followed by Dallas with 10 projects and 964 rooms, New York City with 9 projects and 1,072 rooms, Tampa with 7 projects and 901 rooms, and Orlando with 6 projects and 2,617 rooms.
LE forecasts another 406 hotel openings with 45,160 rooms in the second half of 2025, bringing the year-end total to 735 hotels and 84,788 rooms. Among the top 50 U.S. markets, New York City is expected to open 23 more hotels with 2,971 rooms by year-end, followed by Dallas with 20 hotels and 2,135 rooms, Atlanta with 19 hotels and 2,245 rooms, Phoenix with 12 hotels and 2,144 rooms and Nashville with 12 hotels and 1,527 rooms.
For 2026, Phoenix is forecast to lead with 27 hotel openings and 3,207 rooms, followed by Dallas with 26 hotels and 2,595 rooms, Atlanta with 21 hotels and 2,154 rooms, New York City with 14 hotels and 2,452 rooms and Nashville with 14 hotels and 1,735 rooms.
LE’s 2027 forecast projects Dallas will lead with 35 hotel openings and 3,694 rooms, followed by Inland Empire with 28 hotels and 2,923 rooms, Atlanta with 24 hotels and 2,396 rooms, Phoenix with 21 hotels and 2,223 rooms and Austin with 17 hotels and 1,984 rooms.
LE recently reported that the second-quarter pipeline totaled 6,280 projects with 737,036 rooms, up 3 percent year over year in both.
