75 projects totaling 12,137 rooms announced in Q1
DALLAS LED U.S. markets with 184 hotel projects totaling 22,861 rooms in its construction pipeline at the close of the first quarter, according to Lodging Econometrics. It also posted double-digit growth in projects under construction.
LE’s “U.S. Construction and Pipeline Report” ranked Atlanta second with 158 projects and 17,524 rooms, followed by Phoenix with 123 projects and 16,111 rooms, Nashville with 120 projects and 16,740 rooms, and Austin with 117 projects and 13,850 rooms.
The markets with the most projects under construction at the end of the first quarter were Dallas with 37 projects and 4,111 rooms, Phoenix with 36 projects and 5,096 rooms, and New York with 26 projects and 4,636 rooms, according to the report. Miami followed with 24 projects and 5,317 rooms, and Atlanta with 20 projects and 2,008 rooms. Phoenix posted year-over-year gains of 19 percent in projects and 11 percent in rooms.
Dallas led projects scheduled to start within the next 12 months with 68 projects and 7,909 rooms. Atlanta followed with 61 projects and 6,748 rooms, ahead of Austin with 56 projects and 6,097 rooms, the Inland Empire with 47 projects and 4,939 rooms, and Nashville with 46 projects and 6,583 rooms. Austin recorded year-over-year growth of 19 percent in projects and 14 percent in rooms.
Dallas led early-stage hotel planning with 79 projects and 10,841 rooms, followed by Atlanta with 77 projects and 8,768 rooms, Nashville with 57 projects and 7,993 rooms, the Inland Empire with 54 projects and 5,266 rooms, and Phoenix with 52 projects and 6,957 rooms. Phoenix recorded year-over-year gains of 13 percent in projects and 28 percent in rooms.
In the top 50 U.S. markets, 75 projects totaling 12,137 rooms were announced in the first quarter, according to LE. Phoenix led with nine projects and 901 rooms, followed by Tampa with six projects and 694 rooms. New York, Nashville, Chicago, Atlanta, the Inland Empire, and Indianapolis each recorded four project announcements.
Renovation and brand conversion activity remained strong in the first quarter. Houston led with 35 projects totaling 5,336 rooms. Dallas and Atlanta followed with 31 projects each, totaling 5,430 and 3,836 rooms, respectively, while Washington, DC also had 31 projects totaling 3,757 rooms. San Antonio recorded 30 projects totaling 2,881 rooms.
In the 2026 forecast for new hotel openings, Phoenix led with 27 hotels and 3,640 rooms, followed by New York with 21 hotels and 3,458 rooms, Dallas with 20 hotels and 2,328 rooms, and Austin and the Inland Empire with 12 hotels each, totaling 1,693 and 1,024 rooms, respectively.
In the 2027 forecast, LE analysts expect Dallas to lead with 27 hotel openings and 2,484 rooms, followed by Atlanta with 24 hotels and 2,199 rooms, Phoenix with 17 hotels and 2,076 rooms, and Indianapolis and the Inland Empire with 16 hotels each, totaling 2,246 and 1,410 rooms, respectively.
Dallas also lead the U.S. hotel construction pipeline at the end of third quarter 2025 with 197 projects totaling 24,310 rooms, LE reported in November. It also ranked first in projects scheduled to start within the next 12 months and in early-stage planning.
By: Vishnu Rageev R – HotelRealtor.biz