The American hotel industry is witnessing a remarkable surge in construction activity, particularly in the southern and southwestern regions. According to recent data from Lodging Econometrics, cities like Dallas, Atlanta, Nashville, Phoenix, and the Inland Empire are leading the way with an unprecedented number of projects in various stages of development. The hospitality sector's growth is fueled by increasing demand from both tourists and business travelers, setting new records for hotel developments across the country.
Dallas has emerged as the frontrunner in this expansion, boasting a record-high 204 hotel projects currently underway, which will add 23,669 rooms to its inventory. This city's leadership in hotel construction reflects a broader trend of robust growth in key markets. Other notable cities include Atlanta, with 168 projects totaling 19,431 rooms, and Nashville and Phoenix, each planning 130 projects. The Inland Empire rounds out the top five with 122 projects, amounting to 12,234 rooms. These developments highlight the ongoing strength of the hospitality sector in these regions.
New York City leads in terms of projects already under construction, with 36 projects adding 5,928 rooms. Phoenix follows closely with 31 projects (4,788 rooms), while Dallas has 31 projects (3,467 rooms). Atlanta and the Inland Empire also play significant roles in this stage of development. For upcoming and early-stage developments, Dallas remains at the forefront with 78 planned projects (8,856 rooms) set to begin within the next year. Atlanta follows with 62 projects (7,545 rooms), while Austin, Nashville, and Phoenix show strong pipelines as well.
In addition to new constructions, there is a high level of renovation and conversion activity across the country. Washington DC leads this category with 34 projects (5,204 rooms), followed by Chicago, Charlotte, Houston, and Atlanta. The fourth quarter of 2024 saw 459 new hotel projects announced, nearly half of which were concentrated in the top 50 US markets. Dallas again led this category, with Phoenix, Raleigh-Durham, Las Vegas, and Nashville also ranking highly. Overall, 583 new hotels opened nationwide in 2024, adding almost 68,000 rooms to the market, with New York City seeing the most openings.
The data underscores a promising future for the US hotel sector, especially in the South and Southwest. The continued growth in hotel development reflects the rising demand from diverse traveler segments, positioning these regions as key players in the hospitality industry. As more projects come to fruition, the industry is poised for sustained expansion and innovation in the coming years.