Recent US Construction Pipeline Trend Report As of the end of the first quarter, Dallas led the top five markets with the largest hotel construction pipeline, with 185 projects/21,882 rooms expected to grow in 2023, Lodging Econometrics (LE) reported. That's just below the all-time high reached at the end of the fourth quarter. Atlanta is next with an all-time high of 153 projects/17,929 rooms, followed by Nashville with 127 projects/16,199 rooms. Phoenix follows with 123 projects/16,198 rooms, followed by Inland Empire with a record 121 projects/12,324 rooms.
The U.S. markets with the most projects already under construction at the end of the first quarter were New York with 47 projects and 7,655 rooms, Dallas with 25 projects and 3,059 rooms, and Nashville with 22 projects and 2,828 rooms. There are 21 projects/2,588 units in Atlanta and 20 projects/2,181 units currently under construction in the Inland Empire. Dallas has the most projects scheduled to open in the next 12 months, with 77 projects and 9,269 rooms. Next to Dallas is Atlanta, with 56 projects/6,656 rooms. Phoenix, 56 projects/6,853 rooms. There are 54 projects/5,369 rooms in the Inland Empire. Nashville has 49 projects/6,600 rooms. Nationally, the number of initial planning projects and rooms reached a record high of 2,662 projects/300,686 rooms. At the end of the first quarter, Dallas had the highest number of projects in early planning in the United States, with 83 projects and 9,554 rooms. Atlanta followed with 76 projects/8,685 rooms. Next was Nashville, with 56 projects/6,771 rooms. There are 51 projects and 5,608 rooms in Austin. There are 49 projects/11,442 rooms in Orlando.
A total of 105 new pipeline projects (equivalent to 10,219 rooms) were announced in the first quarter of 2024 in the top 25 U.S. markets. Major markets (NPAs) for new project announcements include New York (12 projects/1,660 rooms), Orlando (11 projects/2,706 rooms), Atlanta (10 projects/1,139 rooms), Denver (8 projects/2,013 rooms), and Inland. Includes Empire (8 rooms). Project/886 rooms.
Renewal and rebranding activity continued to increase across the U.S. in the first quarter. In the first quarter, 2,041 projects/266,405 rooms were in the renovation/conversion pipeline. In the first quarter, Los Angeles had the most combined renovation and conversion projects at 31 projects/4,857 rooms. New York, Atlanta, and Chicago follow, each with 30 projects and accounting for 8,020, 3,488, and 8,128 rooms, respectively. Phoenix had 28 projects/5,100 rooms under renovation and conversion at the end of the first quarter.
In the first quarter, 114 hotels and 15,506 new rooms opened in the U.S., including 60 hotels and 10,036 rooms in the top 50 markets. LE predicts these same 50 markets will open an additional 255 projects/30,502 rooms in the next three quarters, for a total of 315 projects/40,538 rooms in 2024.
In 2024, New York City will lead the rankings for new hotel openings with 26 new hotels (2,910 rooms), followed by Dallas (16 new hotels/2,013 rooms) and the Inland Empire (15 new hotels). New hotels/1,559 rooms) followed by Atlanta (14 new hotels). 2,732 rooms, 13 new hotels/2,364 rooms in Orlando. LE analysts project that in 2025, Atlanta will lead in new hotel openings with 20 new hotels/2,141 rooms, followed by Dallas with 20 new hotels/2,092 rooms, followed by Houston with 19 new hotels. The hotel is expected to have 1,962 rooms. Phoenix and New York rounded out the top markets with 18 new hotels/2,912 rooms and 17 new hotels/2,906 rooms, respectively.
