The U.S. hotel industry is undergoing significant changes, as highlighted by the Q4 2023 U.S. Construction Pipeline Trend Report from Lodging Econometrics (LE). This report reveals exciting developments in key American markets.
Dallas is at the forefront, boasting an impressive 193 projects with 22,291 rooms, showcasing its substantial growth and optimism in the hospitality sector. Atlanta is not far behind, with a record 151 projects encompassing 18,730 rooms. Nashville, with 123 projects and 16,148 rooms, Phoenix with 122 projects and 15,977 rooms, and the Inland Empire with 116 projects and 11,649 rooms, are also significant contributors to this trend.
As of the end of Q4, New York City leads in ongoing construction with 44 projects and 7,338 rooms. Dallas is next with 28 projects and 3,607 rooms, followed by Atlanta, Phoenix, and the Inland Empire.
Dallas is expected to continue its growth, leading in projects slated to begin within the next year and those in the early planning stages. Atlanta, Nashville, the Inland Empire, Phoenix, and Los Angeles are also showing a surge in upcoming projects.
In new project announcements for Q4, Atlanta topped the list with 16 projects and 1,572 rooms, closely followed by Phoenix, Dallas, Austin, and Fort-Worth/Arlington.
Renovation and conversion activities are also robust in the U.S. hotel industry. At the end of the quarter, 43 of the top 50 U.S. markets had at least 10 hotels undergoing such transformations, with Atlanta leading with 33 projects and 3,903 rooms. Significant contributions also come from Las Vegas, Dallas, Chicago, New York City, and Houston.
In 2023, the U.S. hotel market welcomed 474 new hotels, adding 60,436 rooms. New York City, Atlanta, the Inland Empire, Phoenix, and Houston had the highest number of openings.
Looking into 2024, New York City, Dallas, Phoenix, Atlanta, and the Inland Empire are projected to lead in new hotel openings. In 2025, the Inland Empire is expected to top the list, closely followed by Dallas and Atlanta. These projections offer a glimpse into the dynamic future of the U.S. hotel industry.
