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LE: Dallas leads U.S. hotel development in Q2

About 10 U.S. states account for 60 percent of the rooms in the pipeline

LE: Dallas leads U.S. hotel development in Q2

THE TOP FIVE U.S. markets with the largest hotel construction pipelines are led by Dallas with 189 projects and a peak of 22,392 rooms in the second quarter of 2024, according to Lodging Econometrics. That is four projects shy of its end of fourth quarter 2023 record.

Atlanta follows with a record 159 projects and 18,522 rooms. The Inland Empire ranks third with a record 124 projects and 12,569 rooms, while Nashville has 123 projects and 15,924 rooms and Phoenix boasts 120 projects and 15,627 rooms.


LE’s Q2 2024 U.S. Construction Pipeline Trend Report revealed that 10 states—Texas, California, Florida, Georgia, Tennessee, North Carolina, Arizona, New York, Alabama and Michigan—account for 60 percent of the rooms in the pipeline.

The report found that five U.S. markets had the most active construction projects at the end of second quarter. New York leads with 46 projects and 7,572 rooms, followed by Dallas with 30 projects and 3,523 rooms. Atlanta is third with 23 projects totaling 2,765 rooms, while Nashville and Phoenix each have 22 projects.

However, Phoenix's projects total 3,993 rooms, surpassing Nashville's 3,049 rooms.

Projects in the pipeline

Dallas leads in projects scheduled to start in the next 12 months, with 73 projects and 8,787 rooms at the end of second quarter, LE reported. Following Dallas are Atlanta with 68 projects and 8,300 rooms, Inland Empire with 64 projects and 6,298 rooms, Phoenix with 57 projects and 6,855 rooms and Austin with 52 projects and 6,742 rooms.

Dallas also leads in early hotel planning stages at the end of second quarter, with 86 projects adding 10,082 rooms. Atlanta follows with 68 projects totaling 7,457 rooms, while Nashville has 51 projects and 6,264 rooms. Austin and Los Angeles complete the top five, with Austin at 46 projects and 5,006 rooms and Los Angeles at 45 projects and 7,693 rooms.

LE reported 2,007 active U.S. renovation and conversion projects totaling 262,178 rooms in the second quarter. The markets with the most combined renovations and conversions are Atlanta with 33 projects and 46,600 rooms, Los Angeles with 29 projects and 4,552 rooms, Chicago with 28 projects and 7,654 rooms, Phoenix with 28 projects and 4,883 rooms and Washington, DC-MD-VA with 27 projects and 4,036 rooms.

Approximately 301 new projects totaling 39,793 rooms were announced in the second quarter, the report found. Atlanta leads with 10 projects and 1,140 rooms, followed by Dallas with 10 projects and 1,051 rooms, Miami with nine projects and 1,423 rooms, Indianapolis with nine projects and 813 rooms and New Orleans with eight projects and 1,371 rooms.

According to LE analysts, approximately 250 new hotels with 29,777 rooms opened in the U.S. during the first and second quarters of 2024. Of these, 64 percent, comprising 159 hotels and 16,809 rooms, were in suburban locations, while 42 percent, including 105 hotels and 15,127 rooms, were in the top 50 markets.

Looking ahead

LE forecasts that 400 more hotels with 44,451 rooms will open by year-end 2024, bringing the total for the year to 650 hotels and 74,228 rooms. This represents a 35 percent increase over 2023, which saw 480 hotels and 60,922 rooms. Of the 2024 openings, about 47 percent—comprising 304 hotels—will be in the top 50 markets.

Among the top 50 U.S. markets, New York City is forecast to open 23 new hotels with 2,731 rooms by year-end 2024. It is followed by Dallas with 16 new hotels and 2,025 rooms, Atlanta with 15 new hotels and 2,753 rooms, Inland Empire with 14 new hotels and 1,455 rooms, and Orlando with 13 new hotels and 2,397 rooms.

The LE Forecast for new hotel openings in 2026 reveals that Dallas will lead with 34 new hotels and 3,644 rooms. It is followed by Inland Empire with 28 new hotels and 2,644 rooms, Phoenix with 27 new hotels and 2,793 rooms, Atlanta with 26 new hotels and 3,109 rooms, and Austin with 18 new hotels and 2,142 rooms. These projects are expected to open by the end of 2026.

LE recently reported that approximately 6,095 projects with 713,151 rooms were in the U.S. construction pipeline at the end of the second quarter, reflecting a 9 percent year-over-year increase in projects and an 8 percent rise in rooms from the second quarter of 2023.

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