The pipeline of U.S. hotel development in the third quarter set another new record for planned projects, according to a new report from Lodging Econometrics, with more than 6,200 in development, up 9 percent year over year.
Those projects in aggregate include more than 722,800 guest rooms, according to the company.
Dallas in the third quarter once again led the U.S. as the city with the most hotels in the pipeline, with 194 projects and more than 22,800 rooms, according to Lodging Econometrics. The city has led all others in pipeline count since the second quarter of 2021, when New York led.
At the end of the third quarter, 1,185 hotel projects comprising more than 148,700 rooms were under construction, increases of 11 percent and 6 percent year over year, respectively. More than 2,200 projects with 322,300 rooms are set to begin construction in the next 12 months, according to Lodging Econometrics, each figure up 17 percent.
Upscale and upper midscale properties comprise about 60 percent of all projects in the total pipeline, according to the company, with midscale projects and rooms under development increasing by 19 percent and 16 percent, respectively.
Atlanta finished the third quarter second to Dallas in terms of hotel development, with 166 properties comprising nearly 19,200 rooms in the pipeline. Atlanta was followed by Nashville, Tenn., with 130 properties in the pipeline with nearly 17,000 rooms.
