The Q2 2025 Latin America Construction Pipeline Trend Report from Lodging Econometrics (LE) details continued momentum for new hotel development in the region, with stable growth in new hotel openings forecast through 2027. This progression is supported by the region’s expanding construction pipeline, currently standing at 748 projects/116,648 rooms, marking a 22% increase in projects and a 20% increase in rooms year-over-year (YOY).
At the end of the second quarter, Latin America has 303 projects with 51,184 rooms under construction, reflecting a 20% YOY increase in projects and a 15% increase in rooms. Additionally, projects scheduled to start construction in the next 12 months stand at 197 projects/30,943 rooms, up 5% by projects and rooms YOY, while projects in the early planning stage increased by 44% YOY by projects to stand at 248 projects/34,521 rooms and up 45% YOY by rooms, at the close of the quarter.
Key chain scale segments in Latin America at the Q2 close include the luxury chain scale with new record-high project and room totals of 142 projects/27,428 rooms, the upscale chain scale with 140 projects/20,482 rooms, and the midscale chain scale with 137 projects/16,924 rooms.
Construction activity is up in the region at Q2, with 46 projects/7,275 rooms starting construction, representing a 15% increase in projects over the previous quarter. Renovation and conversion activity stands at 159 projects/27,513 rooms at the end of Q2. New project announcements (NPAs) during Q2 increased 6% by projects YOY, to close the quarter at 66 projects/9,067 rooms.
Countries with the greatest number of projects in the pipeline at the Q2 close include Mexico with a record 263 projects and 40,428 rooms, followed by Brazil with 121 projects/16,109 rooms, and the Dominican Republic with all-time highs of 85 projects and 18,458 rooms. These three countries account for 63% of the projects and 64% of the rooms in the total pipeline.
Top cities in Latin America with the largest pipelines at Q2 include Mexico City with a record 29 projects accounting for 3,408 rooms, Riviera Maya with 17 projects/2,204 rooms, and Georgetown with 14 projects/1,824 rooms.
In the first half of 2025, 25 new hotels with 4,474 rooms opened in Latin America. LE’s forecast for the remainder of the year anticipates an additional 64 new hotels with 11,050 rooms to open in Q3 and Q4, totaling 89 new hotels with 15,524 rooms by year-end.
LE’s new hotel openings forecast anticipates continued growth in new hotel openings with 131 new hotels and 19,987 rooms forecast to open in 2026. For the first time, LE is announcing its 2027 forecast, projecting 140 new hotels with 19,483 rooms to open.