With the hope that the pandemic is in the rearview mirror, developers are launching hundreds of new hotel projects. And nowhere is more hotel development going on than in Dallas.
The Dallas area leads the United States in hotel projects with 165 projects and 19,730 rooms underway, according to a new report from analysts Lodging Econometrics.
“As of Q1 22, Dallas has the most projects scheduled to start in the next 12 months, with 56 projects/6,537 rooms,” reports Lodging Econometrics. “Dallas also has the most projects in early planning, at the end of Q1 22, with 84 projects/9,495 rooms.”
Across the country, more than 5,000 new hotels with more than 600,000 rooms were under construction last quarter, an increase of about 2% over the previous year.
“New projects and development planning that were previously on hold are now getting the green light from investors and developers with boosted confidence thanks to rather robust domestic leisure travel in the first part of the year,” say Lodging Econometrics analysts. “With the increase in domestic leisure travel in the United States, as well as the recovery, albeit slower, of business and group travel, confidence in the recovery is growing.
“Developers are eager to move forward with their plans and innovate as this upward trend in hotel demand is expected to continue throughout 2022.”
Besides the Dallas area, other hotel construction hotspots include Atlanta, with 135 projects underway, and Los Angeles, which has 123 hotel projects underway.
For the remainder of 2022, Lodging Econometrics says 649 hotels with 77,568 rooms will open nationwide.
Marriott, Hilton and InterContinental Hotel Group represent nearly 70% of the pavilions in the new hotel offer.