The surge in hotel development is most pronounced in the South and Southwest, driven by rising demand from tourists and business travellers. / Credit: christianthiel.net via Shutterstock

The latest data from Lodging Econometrics highlights significant hotel construction activity across the United States, with Dallas leading the way. The city has reached a record high of 204 hotel projects in development, comprising 23,669 rooms.

 Other cities with notable activity include Atlanta, Nashville, Phoenix, and the Inland Empire.

Dallas has emerged as the leader in US hotel construction, with a record number of projects underway. The latest report from Lodging Econometrics highlights significant developments across major cities, reflecting continued growth in the hospitality sector.

This expansion is driven by strong demand in key markets, particularly in the South and Southwest regions.

Cities with the most hotel projects

Atlanta follows Dallas with 168 hotel projects totalling 19,431 rooms, setting its own record. Nashville and Phoenix each have 130 projects in the pipeline, with 17,029 and 16,824 rooms respectively.

The Inland Empire rounds out the top five with 122 projects amounting to 12,234 rooms.

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In terms of projects already under construction, New York City leads with 36 projects (5,928 rooms). Phoenix comes next with 31 projects (4,788 rooms), while Dallas has 31 projects (3,467 rooms).

Atlanta and the Inland Empire also feature prominently in this stage of development.

Upcoming and early-stage developments

Dallas remains the leader in projects set to begin within the next 12 months, with 78 developments planned (8,856 rooms). Atlanta follows with 62 projects (7,545 rooms), while Austin, Nashville, and Phoenix also have strong development pipelines.

In the early planning stage, Dallas continues to dominate with 95 projects (11,346 rooms).

Atlanta, Nashville, Los Angeles, and Austin are also seeing significant hotel planning activity, reflecting a broader trend of growth across the southern and southwestern United States.

Hotel renovations and new openings

The report also notes a high level of hotel renovation and conversion projects, with nearly 2,000 developments involving over 255,000 rooms nationwide. Washington DC leads in 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 leads this category, with Phoenix, Raleigh-Durham, Las Vegas, and Nashville also ranking highly.

Meanwhile, 583 new hotels opened across the country in 2024, adding almost 68,000 rooms to the market. New York City saw the most openings, followed by Dallas, Nashville, Orlando, and Phoenix.

The findings suggest strong future growth in the US hotel sector, particularly in the South and Southwest regions.