The hotel construction pipeline in Latin America experienced notable expansion in the final quarter of 2024, reaching 685 projects with a total of 110,033 rooms.

This marks a year-on-year (YOY) increase of 15% in projects and 13% in rooms, according to the latest data from Lodging Econometrics (LE).

The surge is driven by significant growth in early planning and luxury developments across the region.

Strong growth in project planning

At the end of Q4 2024, 270 projects comprising 48,138 rooms were under construction, reflecting a 13% rise in both categories compared to the previous year.

The number of projects set to break ground within the next 12 months stood at 179 projects with 28,942 rooms, showing moderate growth of 4% and 5% YOY, respectively.

Early-stage planning showed the strongest increase, with 236 projects and 32,953 rooms, representing a 28% jump in projects and a 20% rise in rooms YOY.

New project announcements were particularly robust, increasing by 44% in the number of projects and 32% in rooms YOY, reaching 82 projects and 12,295 rooms.

Luxury and upper upscale hotels drive expansion

The luxury segment set a record high with 129 projects and 26,077 rooms. Upper upscale hotels also reached peak levels with 115 projects and 22,509 rooms.

The upscale category accounted for 136 projects and 19,220 rooms. Together, these three high-end hotel segments represent 56% of all projects and 54% of the total rooms in the pipeline.

Mexico leads regional hotel construction

Mexico emerged as the leader in hotel construction, reaching a record 248 projects with 38,104 rooms, showing YOY growth of 10% in projects and 7% in rooms.

Brazil followed with 106 projects and 14,799 rooms, reflecting a 23% increase in projects and a 9% rise in rooms YOY. The Dominican Republic experienced one of the most significant surges, with 66 projects and 16,908 rooms, marking a 38% rise in projects and a 31% increase in rooms YOY.

Other notable markets include Colombia, with 30 projects and 3,971 rooms, and Peru, which recorded 28 projects with 3,753 rooms.

 The cities with the highest concentration of new developments include Mexico City (24 projects/2,927 rooms), Lima (14 projects/2,194 rooms), and Riviera Maya (14 projects/1,589 rooms).

Outlook for 2025 and beyond

In Q4 2024, 25 new hotels with a total of 4,470 rooms opened across Latin America, bringing the total number of new hotels for the year to 73, with 13,754 rooms.

Analysts predict a strong pipeline for the coming years, with 106 new hotels and 17,615 rooms expected to open in 2025, followed by 133 hotels and 20,422 rooms in 2026.

 This continued growth highlights the region’s increasing investment in hospitality infrastructure and its appeal to global hotel brands.