January 25, 2023 – PORTSMOUTH, NH According to the fourth quarter United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the U.S. market with the largest hotel construction pipeline by projects is Dallas with a record high count of 176 projects, accounting for 20,790 rooms. Following Dallas is Atlanta with 145 projects/18,100 rooms, Los Angeles with 122 projects/19,419 rooms, Phoenix with 116 projects/16,229 rooms, and Nashville with 106 projects/14,198 rooms.
U.S. markets with the most projects currently under construction are New York, with 61 projects/9,976 rooms, and Phoenix, with 28 projects/5,522 rooms. Following New York and Phoenix is Atlanta, with 27 projects/4,253 rooms, Dallas, with 23 projects/3,435 rooms, and California’s Inland Empire region, with 21 projects/2,120 rooms.
At the Q4 close, Dallas has the most projects scheduled to start in the next 12 months with 68 projects/7,711 rooms, followed by Atlanta with 63 projects/7,520 rooms, Phoenix with 47 projects/5,492 rooms, Nashville with 45 projects/5,199 rooms, and then Los Angeles with 42 projects/6,436 rooms.
Dallas also has the largest project count for hotel projects in the early planning stage, standing at 85 projects/9,644 rooms at the Q4 close. Following Dallas is Los Angeles with 61 projects/10,033 rooms, then Atlanta with 55 projects/6,327 rooms, the Inland Empire region with 48 projects/4,993 rooms, and Orlando with 45 projects/8,127 rooms.
Throughout 2022, the markets with the greatest number of new openings are New York with 29 projects/4,223 rooms, Austin with 18 projects/2,233 rooms, Nashville with 15 projects/2,354 rooms, Atlanta with 13 projects/1,746 rooms, and Washington, DC with 11 projects/2,012 rooms.
LE analysts forecast the New York market will have the most new hotel openings in 2023 with 46 new hotels /7,795 rooms, for a 6.4% growth rate. In 2024, Atlanta is forecast to open the most new hotels, with 26 projects/3,881 rooms, for a 3.4% growth rate.
