In the ever-changing landscape of the U.S. hospitality industry, the Q4 2023 U.S. Construction Pipeline Trend Report by Lodging Econometrics (LE) sheds light on dynamic trends across key markets.
Dallas emerges as a powerhouse, leading the nation with a record-breaking 193 projects/22,291 rooms, signifying Dallas’s robust growth and confidence in the hospitality sector. Following closely is Atlanta, setting its own record with 151 projects/18,730 rooms. Nashville joins the ranks with 123 projects/16,148 rooms, followed by Phoenix with 122 projects/15,977 rooms, and the Inland Empire with 116 projects/11,649 rooms.
At the Q4 close, New York City continues to have the greatest number of projects under construction with 44 projects/7,338 rooms. Dallas follows with 28 projects/3,607 rooms, then Atlanta with 25 projects/4,279 rooms, Phoenix with 24 projects/4,247 rooms, and finally the Inland Empire with 22 projects/2,275 rooms.
Dallas looks set to maintain its momentum; leading 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, signifying a dynamic landscape of upcoming projects.
Atlanta takes the lead in new projects announced in Q4 with 16 projects/1,572 rooms, followed closely by Phoenix with 15 projects/1,832 rooms, then Dallas with 14 projects/1,706 rooms, Austin with 11 projects/1,007 rooms, and then Fort-Worth/Arlington with 10 projects/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/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/4,308 rooms, Atlanta with 13 hotels/1,279 rooms, Inland Empire with 11 hotels/1,032 rooms, Phoenix with 10 hotels/1,339 rooms, and Houston with 10 hotels/1,327 rooms.
Looking ahead to 2024, the U.S. markets forecast to open the greatest number of new hotels are New York City with 28 projects/3,050 rooms, Dallas with 18 projects/2,333 rooms, Phoenix with 17 projects/3,070 rooms, Atlanta with 15 projects/2,808 rooms, and the Inland Empire with 15 projects/1,559 rooms. In 2025, LE analysts expect the Inland Empire to open the most new hotels with 22 projects/2,074 rooms, followed closed by Dallas and Atlanta, each with 21 projects. These forecasts provide valuable insights into the ongoing evolution of the U.S. hotel landscape.