Dallas Tops U.S. Hotel Construction Pipeline

News Summary

Dallas emerges as a leading city in hotel construction, showcasing a robust pipeline of 203 projects with nearly 25,000 rooms. Other competitive markets like Atlanta and Phoenix follow closely, contributing to an evolving hospitality landscape. Anticipated growth continues into 2026, with significant projects set for completion, particularly in Phoenix, where extensive developments aim to enhance accommodation options to meet growing demand.

Dallas Leads U.S. Hotel Construction Pipeline

As of the end of the first quarter in 2025, Dallas is positioned at the forefront of hotel development in the United States, boasting the largest hotel construction pipeline with 203 projects amounting to 24,496 rooms. This represents a significant growth of 9% in the number of projects and an 11% increase in room availability compared to the previous year. The surge in hotel construction in Dallas highlights the city’s dynamic hospitality sector and its growing appeal as a travel destination.

Competitive Markets Following Dallas

Just behind Dallas, several cities are also experiencing robust hotel construction activity. Atlanta ranks second with 166 projects totaling 19,149 rooms, followed closely by Nashville with 127 projects and 16,589 rooms. Phoenix is also making strides, with 126 projects comprising 16,490 rooms, while Austin contributes 124 projects and 14,514 rooms to the overall national count. Both Phoenix and Austin have hit all-time highs in their respective project and room totals, with Phoenix seeing an 11% growth in projects and a 9% increase in rooms year-over-year.

Projects Under Construction

Among the U.S. markets with the most active construction, New York leads with 39 projects encompassing 7,064 rooms, followed by Phoenix with 34 projects and 5,023 rooms. Dallas follows closely with 31 projects that include 3,706 rooms, underscoring the competitive landscape of the hospitality sector across major cities. Atlanta and Inland Empire complete the top five, with 26 projects (3,182 rooms) and 22 projects (2,399 rooms), respectively.

Future Projections for 2026

Looking ahead to 2026, the expectations are high, with a forecast of 848 new hotels and 92,892 rooms anticipated to open nationwide by the end of the year. Dallas is expected to maintain its leading presence in new hotel openings, with an estimated 26 hotels providing 2,611 rooms, followed by Atlanta with 24 hotels and 2,539 rooms. Phoenix and the Inland Empire are both projected to contribute 23 hotels each to the nationwide tally.

Upcoming Developments in Phoenix

In Phoenix, several noteworthy hotel projects are on track for completion within the next 12 months. These include:

• Candlewood Suites Mesa – Phoenix East (June 2025): 108 rooms
• The Remi Scottsdale Autograph Collection (June 2025): 161 rooms
• Fairfield Surprise Prasada (July 2025): 60 rooms
• TownePlace Suites Surprise Prasada (July 2025): 50 rooms
• La Quinta Inn & Suites by Wyndham Phoenix (August 2025): 95 rooms
• My Place Hotel-Phoenix East/Mesa (September 2025): 88 rooms
• SpringHill Suites by Marriott Surprise (September 2025): 106 rooms
• AC Hotel Phoenix North Happy Valley (October 2025): 183 rooms
• VAI Resort (December 2025): 1,100 rooms

Further additions to the Phoenix market will include the Home2 Suites by Hilton Goodyear (January 2026), LivAway Suites Tolleson (January 2026), and the Residence Inn by Marriott Phoenix Gilbert (February 2026), among others, which will enhance the local accommodation landscape.

Strategic Developments and Recommendations

Rounding out the developments in Phoenix is a significant $140 million high-rise hotel project known as The Edith, being undertaken by a consortium led by Sunbelt Holdings. The project will feature 236 rooms and comprehensive amenities, adding luxury options to the city’s hospitality offerings.

The City of Phoenix is also actively seeking proposals to transform a parking garage into a hotel with a minimum of 400 rooms due to a pressing need for more accommodations, especially for convention visitors. A recent study has recommended increasing hotel inventory around the Phoenix Convention Center by an estimated 800 to 1,200 additional rooms within the next five years to remain competitive with other cities vying for tourism and conventions.

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Additional Resources

• AZ Big Media: Phoenix Ranks in Top 5 for Largest Hotel Construction Pipeline
• ABC15: New Downtown Phoenix Hotel Could Go Vertical This Fall
• AZ Central: Hotel Development Sought for Site of Downtown Phoenix Parking Garage
• GlobeSt: These Cities are Seeing Unprecedented Hotel Construction Growth
• Wikipedia: Hotel Industry