DALLAS LEADS THE U.S. hotel construction pipeline for the fourth consecutive quarter, according to Lodging Econometrics. Among brands, Marriott International led the pipeline.
Dallas had a record 173 projects with 20,707 rooms in the second quarter of this year, followed by Atlanta with 140 projects containing 18,131 rooms, Los Angeles with 124 projects with 20,365 rooms, New York, with 113 projects with 19,238 rooms and Phoenix with 108 projects containing 14,964 rooms,
Marriott had 1,355 projects with 167,034 rooms, up 4 percent by projects year-over-year, tops the pipeline during the period.
The Q2 2022 U.S. Construction Pipeline Trend Report said that major markets and popular tourist destinations in the U.S. reported highest occupancy rates since the pandemic began in early 2020 in the second quarter mainly due to robust leisure travel, group, and international travel.
New York City with 78 projects with 13,063 rooms, Atlanta with 25 projects containing 3,905 rooms, Dallas with 25 projects with 3,725 rooms, Phoenix with 23 projects with 4,955 rooms and Los Angeles with 22 projects with 3,606 rooms are the top five markets with the most projects under construction during the end of June. They account for 22 percent of rooms under construction in the U.S.
According to LE, Atlanta has the most projects scheduled to start in the next 12 months, with 62 projects containing 8,020 rooms. It is followed by Atlanta and Dallas, with 55 projects with 6,465 rooms respectively.
Phoenix with 49 projects with 5,968 rooms, Houston with 45 projects containing 4,619 rooms and Los Angeles with 43 projects with 6,715 rooms are the next major markets.
Dallas has the most projects in early planning with 93 projects containing 10,517 rooms, followed by Los Angeles with 59 projects with 10,044 rooms, Atlanta with 53 projects containing 6,206 rooms, Orlando with 44 projects with 7,640 rooms and Washington DC with 40 projects with 5,659 rooms.
Most new projects were announced in Dallas in the second quarter with 16 projects containing 1,654 rooms. Atlanta followed with 11 projects with 1,206 rooms, the Inland Empire CA with 11 projects containing 1,113 rooms, Houston with 9 projects with 929 rooms, and Charlotte with 9 projects with 916 rooms.
LE report revealed that a total of 1,889 projects with 237,420 rooms are currently in the renovation and conversion pipeline. Houston tops the list in this segment with 42 projects containing 4,666 rooms, followed by Atlanta with 39 projects with 5,246 rooms, Chicago with 34 projects with 4,908 rooms, Dallas with 30 projects with 3,785 rooms, and San Diego with 28 projects containing 4,753 rooms.
Twenty-six percent of new hotels are expected to open in New York, Austin, Atlanta, Los Angeles, Nashville, Detroit, and the Inland Empire in the second half of the year. In the second quarter, the top 25 markets in the U.S. are forecast to open 46 percent of the rooms by year-end.
Among top 50 markets, New York City is forecast to open 58 projects with 8,329 rooms this year, followed by Austin with 25 projects containing 3,291 rooms, Atlanta with 22 projects with 2,598 rooms, Los Angeles with 18 projects containing 3,191 rooms, and then Nashville with 17 projects with 2,630 rooms. As many as 151 projects with 18,966 rooms were opened in the first half of 2022 in the top 50 markets, and another 252 projects with 33,948 rooms are expected to open in the remaining two quarters, which will take the total to 403 projects with 52,914 rooms by year-end.
LE predicts that 366 projects accounting for 46,176 rooms will be opened in 2023 within the top 50 markets, with a growth rate of 1.7 percent, and 402 new hotel projects with 47,065 rooms in 2024, with similar growth rate.
Marriott, Hilton lead among brands
According to LE, projects by Marriott International leads U.S. hotel construction pipeline among franchise companies.
It is followed by Hilton Worldwide with 1,312 projects containing 147,780 rooms, an 8 percent year-over-year increase, and InterContinental Hotels Group with 789 projects with 79,701 rooms, up 2 percent by projects year-over-year. They comprise 66 percent of the projects and 64 percent of the rooms in the pipeline in the first half of this year.
Marriott has the most projects under construction and scheduled to start within the next 12 months, with 249 projects with 33,398 rooms and 653 projects with 80,395 rooms respectively. Hilton has the most projects in the early planning stage of the pipeline, with 725 projects containing 78,879 rooms, together they account for a record 32 percent of projects in the early planning stage.
Home2 Suites by Hilton leads among brands in the pipeline with 465 projects with 47,825 rooms, followed by Holiday Inn Express by IHG with 299 projects containing 28,598 rooms. Hilton’s Hampton by Hilton with 281 projects with 28,591 rooms, Marriott’s TownePlace Suites with 270 projects containing 25,340 rooms and Fairfield Inn brand with 235 projects with 21,885 rooms are next in the list.
During the first half, 247 hotels with 28,116 rooms opened across the U.S. Marriott, Hilton, and IHG branded hotels accounted for 70 percent with 172 new hotel openings and 20,365 rooms.
Marriott opened 78 new hotels with 9,475 rooms, Hilton opened 64 new hotels containing 7,901 rooms and IHG opened 30 new hotels with 2,989 rooms. LE said that they will open another 248 hotels with 30,756 rooms by the end of 2022.
According to LE, Marriott will open 169 new hotels with 21,834 rooms this year, up 2.5 percent, followed by Hilton with 150 new hotels containing 17,698 rooms, an increase of 2.3 percent, followed by IHG with 101 new hotels with 11,589 rooms, with a growth rate of 2.7 percent.
Marriott is expected to open another 181 new hotels with 21,850 rooms next year, up 2.4 percent, Hilton will open 154 new hotel projects containing 18,974 rooms, up 2.5 percent, IHG top open 153 new hotels accounting for 15,650 rooms, with a growth rate of 3.6 percent in 2023.
In 2024, Marriott is forecast to open 227 projects with 26,807 rooms, up 2.9 percent, Hilton is expected to open 189 new hotels with 20,048 rooms, an increase of 2.5 percent, and IHG is expected to open 202 new projects with 19,781 rooms, up 4.4 percent, according to LE forecast.
The recent LE report said that U.S. hotel construction pipeline continued its growth at the end of the second quarter of 2022 with 5,220 projects with 621,268 rooms.
IHG launched its 20th global brand, Ruby, in the U.S.
The brand offers serves city-centers and urban locations with restrictions.
It focuses on major urban markets with new-build, conversion, and adaptive reuse.
IHG HOTELS & RESORTS introduced Ruby Hotels, its 20th global brand, to the U.S. It is designed to fit in city centers and urban locations with entry barriers and space constraints.
The company’s growth plan will focus on major urban markets and include new-build, conversion and adaptive reuse projects, IHG said in a statement.
“Ruby is a brand built for the future of hospitality,” said Jolyon Bulley, IHG's CEO for the Americas. “Its success in Europe speaks to the growing demand for flexible, lifestyle-focused hotels in highly traveled locations. Ruby’s U.S. introduction will complement our premium portfolio and offer owners a differentiated product with strong economics and scalable growth potential. We’re encouraged by the initial interest and buzz around Ruby, which reinforces our confidence in its appeal and ability to thrive in this market.”
Ruby, founded in Germany in 2013, joined the IHG portfolio earlier this year and has 34 open or pipeline hotels in European cities. The U.S. launch reflects IHG’s plan to grow the brand to more than 120 hotels in the next decade and more than 250 in 20 years.
Lauren Krostue, Ruby's vice president for global brand management, said Ruby allows IHG to connect with a new type of traveler—those who value unique stays at an accessible price point.
"In bringing Ruby to the U.S., we will retain what’s made the brand so special in Europe—including its unique design and operating model—while localizing certain elements to reflect market needs," she said. "We look forward to introducing the Ruby experience to a new group of owners and guests and showcasing what sets the brand apart in the increasingly popular ‘urban micro’ segment.”
IHG nearly doubled global conversion signings from 2023 to 2024, with conversions representing about 60 percent of openings and 40 percent of signings in the first quarter of 2025.
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The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
It allows hotels and resorts to meet travelers’ needs while supporting the economy.
It provides foreign workers for seasonal jobs when domestic workers are unavailable.
THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.
The Edgeworth study for the H-2B Workforce Coalition found the program allows businesses to hire foreign workers for seasonal jobs when domestic workers are unavailable. It showed no evidence that increases in H-2B visas reduce U.S. employment or wages. Instead, each H-2B worker supports three to five local jobs and areas with more H-2B workers saw wages grow 1.6 percent faster.
“Areas that hired more H-2B workers under the higher visa cap saw greater job and wage growth among U.S. workers,” said Steve Bronars, partner at Edgeworth Economics, citing findings consistent with an earlier analysis by the U.S. Government Accountability Office.
Ashley McNeil, AHLA’s vice president of federal government affairs and chair of the H-2B Workforce Coalition, said the new analysis underscores the H-2B program’s clear value to local communities.
“The hotel industry, which is still 200,000 workers short compared to pre-pandemic levels, relies on legal guest worker programs to augment our workforce, particularly to address seasonal demands,” McNeil said. “Access to the H-2B visa program has been critical in allowing hotels and resorts of all sizes to meet travelers’ needs, while supporting the local workforce and economy.”
The program has also helped businesses manage peak-season labor shortages, easing the workload for full-time employees. Landscaping accounts for nearly 40 percent of certified H-2B workers. Hotels and motels account for 8.67 percent, support activities for forestry 6.3 percent and seafood processing and packaging 5.65 percent.
“This study reaffirms what our members have long recognized: despite extensive recruitment efforts, there remains a critical shortage of U.S. workers willing or available to fill temporary positions that are currently being filled by H-2B workers,” said Arnulfo Hinojosa, COO of the Federation of Workers and Employers of America and vice chair of the H-2B Workforce Coalition. “H-2B workers allow seasonal businesses to operate at a higher capacity and create more U.S. jobs.”
Meanwhile, President Donald Trump recently signed a proclamation raising the H-1B visa fee to $100,000 annually, a move that could affect Indian professionals in the U.S.
The use of AI agents hotels must rethink customer loyalty, a FAU study finds.
The paper proposes strategies as AI becomes the main booking channel.
Researchers warn of ethical and privacy issues.
HOTELS MUST RETHINK how they build and maintain loyalty as artificial intelligence systems make travel decisions and bookings for consumers, according to a study by Florida Atlantic University. The rise of artificial intelligence agents will complicate hotel customer loyalty management.
“AI agents will be the new gatekeepers of loyalty,” said Anil Bilgihan, FAU College of Business professor of hospitality management. “The question is no longer just ‘How do we win a customer’s heart?’ but ‘How do we win the trust of the algorithms advising them?’ Hotels need to prepare for a future where a guest’s preferred brand may be decided before they even open their phone.”
As consumers use AI agents to search for hotels, check availability, compare prices, analyze reviews and make bookings, decision-making will shift to the algorithm, creating loyalty to the agent or its ecosystem rather than to the brand, the report said.
Bilgihan said AI is not influenced by traditional advertising and sorts options based on algorithmic criteria.
“Imagine a traveler asking their AI agent to book a hotel in Miami within a certain budget, with a pool and strong reviews,” he said. “If your hotel doesn’t appear in that recommendation set, you may never be considered. Hotels must design loyalty programs, digital visibility and service experiences that appeal to both human guests and the AI systems filtering choices on their behalf.”
The paper proposes a framework for hotels to rethink loyalty strategies as AI agents become the main channel for travel bookings. While emotional branding still matters for humans, marketers should focus on loyalty programs that engage both humans and AI systems, using customer data to tailor experiences, improve algorithmic visibility and design programs appealing to both, the study said.
Researchers also warned of ethical and privacy concerns, including algorithmic bias, limited consumer understanding of how AI agents work and challenges in brand visibility.
“At the end of the day, technology doesn’t replace the fundamentals,” Bilgihan said. “AI may shape how guests discover and book, but the foundation of loyalty will always be the experience once they arrive.”
The paper in the International Journal of Contemporary Hospitality Management was authored by Max Ostinelli, assistant professor of marketing; Ye Zhang, associate professor of hospitality management; Melanie Lorenz, associate professor of marketing and Bilgihan.
New York University’s State of Distribution 2025 found a gap between AI potential and hotel operational readiness, as teams are still developing training, systems and workflows. In May, India’s International Institute of Hotel Management (IIHM) Kolkata launched ‘NamAIste – IIHM HospitalityGPT,’ the first generative AI platform for the global hospitality industry.
More than 70 percent expect a RevPAR increase in Q4, according to HAMA survey.
Demand is the top concern, cited by 77.8 percent, up from 65 percent in spring.
Only 37 percent expect a U.S. recession in 2025, down from 49 percent earlier in the year.
MORE THAN 70 PERCENT of respondents to a Hospitality Asset Managers Association survey expect a 1 to 3 percent RevPAR increase in the fourth quarter. Demand is the top concern, cited by 77.8 percent of respondents, up from 65 percent in the spring survey.
HAMA’s “Fall 2025 Industry Outlook Survey” found that two-thirds of respondents are pursuing acquisitions, 80 percent plan renovations in the coming year and 57 percent are making or planning changes to brand affiliation or management strategies.
“With hopes high for a stronger fourth quarter, hotel asset managers continue to maintain an optimistic outlook,” said Chad Sorensen, HAMA president. “More than 70 percent of our members expect RevPAR to increase 1 to 3 percent and two-thirds are pursuing acquisitions. With 80 percent planning renovations in the coming year, we see an engaged community focused on performance.”
Conducted among 81 HAMA members, about one-third of the association, the survey reports expectations for revenue growth, property investments and acquisitions.
However, the top three most concerning issues were demand, ADR growth and tariffs, HAMA said.
RevPAR growth forecast
Looking into 2026, 72.8 percent expect 1 to 3 percent growth, 18.5 percent expect 4 to 6 percent, 7.4 percent anticipate flat results and 1.2 percent project a decline. Full-year RevPAR projections versus budget are more mixed: 49 percent expect 1 to 3 percent growth, 17 percent expect flat results, 12 percent expect 4 to 6 percent growth, 2 percent expect 7 percent or more and 19 percent expect declines.
Hotel asset managers note several market pressures, the report said. Other concerns include ADR growth at 51.9 percent, tariffs at 34.6 percent, wage increases at 33.3 percent and potential Federal Reserve rate changes at 32.1 percent. Management company performance at 25.9 percent, immigration and labor trends, union activity and insurance costs were also mentioned.
“The industry is at its highest level of concern around maintaining or increasing rates,” Sorensen said. “There’s pressure to build on the P&L going into 2026.”
Performance projections
Confidence in the broader economy has increased since spring, the survey found. Only 37 percent of respondents expect a U.S. recession in 2025, down from 49 percent earlier in the year.
When asked about properties exceeding gross operating profit forecasts, 59 percent of managers expect 0 to 25 percent of their hotels to surpass targets, 25 percent expect 26 to 50 percent, 10 percent expect 51 to 75 percent and 6 percent expect 76 to 100 percent. Additionally, 20 percent reported returning hotels to lenders or entering forced sales since the spring survey.
Peachtree launched new DST with 131,040‑square foot industrial facility in Mansfield, Texas.
The property was acquired at $180 per square foot.
Peachtree completed $320M in debt-free transactions across multiple markets since 2022.
PEACHTREE GROUP LAUNCHED its latest Delaware Statutory Trust with the acquisition of a newly built 131,040-square-foot industrial facility in Mansfield, Texas. The company has completed about $320 million in debt-free transactions since launching its DST program in 2022, according to its statement.
The rear-load building, completed in 2025, features 36-foot clear heights, a three-acre outdoor storage yard and room for future expansion. The property was acquired for $180 per square foot, below market comparables, and is fully leased to Ferguson, a distributor for professional contractors in North America, Peachtree said in a statement.
“In today's higher-rate environment, where tighter credit and volatile valuations challenge traditional ownership, DSTs have emerged as a compelling alternative,” said Greg Friedman, Peachtree’s managing principal and CEO. “They deliver attractive cash flows backed by institutional-quality assets, while also offering tax advantages, professional management and diversification.”
Ferguson signed a 10-year corporate lease beginning in March, with 3 percent annual rent escalations, two five-year extension options and limited landlord obligations, the statement said. With investment-grade credit ratings from S&P BBB+ and Moody’s Baa1, the tenant supports the trust’s income stability and risk profile.
Peachtree’s DSTs, Opportunity Zones and REIT structures form a platform aimed at tax efficiency, compounding benefits and risk-adjusted returns, supported by Peachtree’s integrated asset management.
“Expanding into the industrial sector is a step toward building a diversified DST platform that can perform across cycles,” said Tim Witt, Peachtree’s president of 1031 Exchange and DST Products. “DSTs turn a looming tax bill into compounding wealth, keeping money in commercial real estate, but their true strength is pairing tax efficiency with investments that stand on their own merits.”
Atlanta-based Peachtree is led by Friedman; managing principal and CFO Jatin Desai and principal Mitul Patel. In July, Peachtree added the 128-key SpringHill Suites Phoenix West Avondale in Arizona as its ninth Delaware Statutory Trust offering since launching the program in 2022.