At the end of Q4 2023, 43 of the leading 50 US markets have 10 or more hotels undergoing renovation or conversion. Credit: Tverdokhlib via Shutterstock

The state of Dallas is emerging as a powerhouse in the hotel industry, leading the nation with a total of 193 current construction projects comprising 22,291 rooms in the financial year 2023, according to new figures released by Lodging Econometrics (LE) [an information service for the hospitality sector]. The record-breaking figure reflects Dallas’s robust growth and confidence in the hospitality sector.

Atlanta follows with 151 projects and 18,730 rooms, setting its own record. Nashville, Phoenix and the Inland Empire [the urban and metropolitan area of southern California centred around the cities of Riverside and San Bernardino] also demonstrated significant activity in the construction pipeline.

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Top cities in construction projects

In the fourth quarter (Q4) of 2023, New York City maintains the highest number of projects under construction – 44, with 7,338 rooms.

Dallas has 28 projects with 3,607 rooms in Q4, followed by Atlanta, Phoenix and the Inland Empire.

This distribution indicates the dynamic nature of ongoing hotel construction projects in these key markets.

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The report highlights a robust renovation and conversion pipeline activity across the US, with 43 of the top 50 markets having 10 or more hotels undergoing renovation or conversion at the end of the quarter.

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Atlanta leads this charge with a total of 33 projects and 3,903 rooms. Other major cities such as Las Vegas, Dallas, Chicago, New York City and Houston also contribute significantly, showcasing the industry’s focus on revitalising existing structures.

Looking ahead to 2024 and 2025

Dallas appears set to maintain its momentum, leading in both projects scheduled to start during 2024 and in projects at early planning stages.

Atlanta, Nashville, the Inland Empire, Phoenix and Los Angeles follow suit, indicating a dynamic landscape of upcoming projects.

Atlanta takes the lead in new projects announced in Q4, with 16 projects and 1,572 rooms.

New York City is forecast to open the most new hotels in 2024, with 28 projects and 3,050 rooms. Dallas, Phoenix, Atlanta and the Inland Empire are also expected to see significant openings.

In 2025, LE analysts predict that the Inland Empire will open the most new hotels, with 22 projects and 2,074 rooms, followed closely by Dallas and Atlanta, each with 21 projects.

These forecasts offer valuable insights into the ongoing evolution of the US hotel landscape.