With hopes that the pandemic is in the rearview mirror, developers are cranking out hundreds of new hotel projects. And nowhere is more hotel development on the way than in Dallas.
The Dallas area tops the U.S. in hotel projects with 165 projects and 19,730 rooms on the way, according to a new report by analysts at Lodging Econometrics.
“At first quarter ‘22, Dallas has the most projects scheduled to start in the next 12 months, with 56 projects/6,537 rooms,” Lodging Econometrics reports. “Dallas also has the most projects in early planning, at the end of first quarter ‘22, with 84 projects/9,495 rooms.”
Nationwide, more than 5,000 new hotels with more than 600,000 rooms were in the works last quarter — an increase of about 2% from a year earlier.
“New projects and development planning that was previously on hold are now getting the green light from investors and developers with buoyed confidence thanks to rather robust domestic leisure travel during the first part of the year,” Lodging Econometrics analysts say. “With stronger domestic leisure travel in the U.S., along with the albeit slower revival of corporate and group travel, there is growing confidence in the recovery.
“Developers are eager to move forward with plans and break ground as this upward trend in hotel business demand is expected to continue throughout 2022.”
Along with the Dallas area, other hotel building hot spots include Atlanta, with 135 on the way, and Los Angeles, which has 123 hotel projects in the works.
For the remainder of 2022, Lodging Econometrics says 649 hotels with 77,568 rooms will open nationwide.
Marriott, Hilton and InterContinental Hotel Group account for almost 70% of the flags on the new hotel supply.
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