Record-Breaking 6,378 Hotel Projects as U.S. Pipeline Continues to Rise

Hotel construction in the United States hit new historic levels in the fourth quarter of 2024, according to Lodging Econometrics’ (LE’s) latest Hotel Construction Pipeline Trend report. The total pipeline reached 6,378 projects, a new project record, with 746,986 rooms, showing year-over-year (YOY) growth of 7% in projects and 8% in rooms.

The U.S. hotel pipeline shows robust activity across all project stages. Projects currently under construction stand at 1,149 projects totaling 142,238 rooms, reflecting a healthy increase in projects YOY. Looking ahead, there are 2,259 projects with 259,108 rooms scheduled to break ground anytime between now and the next 12 months.

The most dramatic growth appears in the early planning stage, which reached unprecedented counts with 2,970 projects and 345,640 rooms. This represents significant YOY growth, with projects up 15% and room counts increasing by 19% YOY.

By chain scale, upper midscale hotels lead the pipeline with a record-breaking 2,354 projects and 227,845 rooms. Upscale hotels follow with 1,471 projects and 182,474 rooms. The midscale segment achieved a new record with 957 projects and 80,436 rooms, while the upper upscale chain scale reached a record 338 projects at the Q4 ’24 close.

The U.S. hotel industry saw growth in new project announcements during 2024, with 459 new projects totaling 58,123 rooms entering the pipeline. Brand conversions maintained strong momentum through year-end ‘24, reaching a record high of 1,336 projects with 128,736 rooms at the Q4 close.

While renovation activity showed a slight decline in Q4, it remained robust with 661 projects comprising 127,080 rooms. Together, renovation and conversion projects represent a significant portion of hotel development activity, totaling 1,997 projects with 255,816 rooms.

New hotel openings in 2024 were at 583 hotels with 67,995 rooms in the U.S., expanding the nation’s hotel supply by 1.2%. Lodging Econometrics projects even stronger growth ahead, with 730 new hotels and 82,538 rooms expected to open in 2025, which will correlate into a 1.5% increase in supply. Growth is forecast to accelerate further in 2026, with 904 new hotels and 97,328 rooms scheduled to open, which would further boost the national supply by 1.7%.

To purchase the full Q4 2024 United States Hotel Construction Pipeline Trend Report, please visit: Purchase Reports – Construction Pipeline Trend Reports.

U.S. Hotel Development Booms: Dallas Pipeline Tops 200 Projects, Southern Markets Dominate Future Growth

The latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that Dallas is leading the nation’s hotel construction pipeline with a record-breaking 204 projects totaling 23,669 rooms. Atlanta follows with its own record of 168 projects (19,431 rooms), while Nashville (130 projects/17,029 rooms), Phoenix (record 130 projects/16,824 rooms), and the Inland Empire (122 projects/12,234 rooms) complete the top five markets.

In the under construction stage of the pipeline, New York City leads with 36 projects (5,928 rooms), followed by Phoenix (31 projects/4,788 rooms), Dallas (31 projects/3,467 rooms), Atlanta (27 projects/3,211 rooms), and the Inland Empire (19 projects/1,962 rooms).

Dallas continues to dominate planned construction starts anytime within the next 12 months with 78 projects (8,856 rooms). Atlanta follows with 62 projects (7,545 rooms), then Austin with 53 projects (6,663 rooms), while Nashville and Phoenix each have 48 projects planned (6,533 and 6,272 rooms respectively).

The early planning stage further demonstrates Dallas’ market strength, with 95 projects (11,346 rooms). Atlanta is next with 79 projects (8,675 rooms) in early planning, while Nashville (64 projects/7,840 rooms), Los Angeles (56 projects/9,243 rooms), and Austin (55 projects/5,974 rooms) round out the top five.

These project counts underscore unprecedented future growth in the U.S. hotel sector, with the South and Southwest regions leading the way.

LE’s latest report also reveals substantial hotel renovation and conversion activity across the U.S. at the end of Q4 2024, totaling 1,997 projects with 255,816 rooms. Washington DC leads these combined projects with 34 projects comprising 5,204 rooms, while Chicago and Charlotte each report 31 projects (7,514 and 3,384 rooms respectively). Houston follows with 30 projects (4,335 rooms), and Atlanta completes the top five with 28 projects (3,595 rooms).

The fourth quarter also saw 459 new project announcements nationwide, with 46% of these announcements concentrated in the top 50 U.S. markets. Dallas emerges as the leader in new project announcements with 20 projects (2,061 rooms), followed by Phoenix (12 projects/1,376 rooms) and Raleigh-Durham (10 projects/1,146 rooms). Las Vegas and Nashville round out the top markets for new announcements, each with 8 projects (4,556 and 991 rooms respectively).

The U.S. market saw 583 new hotel openings accounting for 67,995 rooms through Q4 2024. New York topped the list of new hotel openings with 16 hotels (1,824 rooms), followed by Dallas (14 hotels/1,847 rooms), Nashville (13 hotels/1,770 rooms), Orlando (11 hotels/1,908 rooms), and Phoenix (10 hotels/1,230 rooms).

Looking ahead to 2025, New York is forecast to maintain its top position opening the most new hotels with 24 new hotels (3,089 rooms). Atlanta and Dallas are each projected to open 18 hotels (2,084 and 1,956 rooms respectively), while Nashville is forecast to open 13 hotels (1,987 rooms) and Phoenix 12 hotels (1,273 rooms).

LE’s extended forecast shows continued growth with 904 new hotels (97,328 rooms) projected to open in 2026. Dallas, Atlanta, Inland Empire, Phoenix, and Austin are expected to lead these openings in 2026.

To purchase the full Q4 2024 United States Hotel Construction Pipeline Trend Report or any individual Market Trend Report, please visit: Purchase Reports.