According to the recent Q2 2025 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics, at the close of the quarter, Dallas has the largest hotel construction pipeline with 199 projects and a new record-high 24,497 rooms, continuing a multi-quarter trend.
Atlanta follows with 165 hotels and 19,027 rooms; then Nashville with 128 hotels and 17,025 rooms; and Austin, Texas, with new record-high project and rooms totals of 125 hotels and 14,598 rooms. Phoenix follows with 123 hotels and 16,228 rooms. All of these markets show year-over-year growth at Q2 with the most substantial being Austin with a 10 percent year-over-year increase by projects and a 7 percent increase by rooms.
At the end of the second quarter, the five U.S. markets with the greatest number of projects currently under construction in the total pipeline are led by Phoenix with 35 hotels and 5,089 rooms. Following Phoenix, are New York City with 33 hotels and 6,118 rooms, Dallas with 32 hotels and 3,804 rooms, Atlanta with 23 hotels and 2,782 rooms, and Nashville rounds out the top five with 20 projects and 2,739 rooms.
At the Q2 close, Dallas, with 78 hotels and 8,603 rooms, has the most projects scheduled to start within the next 12 months, followed by Atlanta with 65 hotels and 7,942 rooms, Austin with 53 hotels and 6,009 rooms, Nashville with 52 hotels and 7,333 rooms, and Inland Empire with 51 hotels and 5,184 rooms.
Dallas again tops the list of markets with the most hotel projects in the early planning stage, at Q2, with 89 hotels and 12,090 rooms. Then Atlanta, with 77 hotels and 8,303 rooms, and Nashville with 56 hotels and 6,953 rooms. Closing out the top five are Orlando and Austin, each with 54 projects and accounting for 13,329 rooms and 6,033 rooms respectively.
At Q2 close, combined U.S. renovation and conversion projects stand at 1,956 active projects with 259,495 rooms. The markets with the largest combined number of renovations and conversions, at Q2, are Washington DC with 34 hotels and 4,889 rooms, Atlanta with 30 hotels and 3,370 rooms, Charlotte with 29 hotels and 3,343 rooms, Orlando with 27 hotels and 14,722 rooms, and New York with 27 hotels and 8,288 rooms.
According to LE analysts, 329 new hotels with 39,628 rooms opened in the U.S. during the first and second quarter of 2025. After the first half of the year, Atlanta leads in new openings with 11 hotels and 1,191 rooms; followed by Dallas with 10 hotels and 964 rooms; the New York City market with nine hotels and 1,072 rooms; Tampa, Fla., with 7 hotels and 901 rooms; and Orlando with 6 hotels and 2,617 rooms.
Looking Ahead
The LE forecast for the remainder of 2025 includes the opening of another 406 hotels with 45,160 rooms, totaling 735 new hotels with 84,788 rooms by year-end. Of the top 50 markets in the U.S., the New York City market is forecast to open another 23 new hotels, adding 2,971 rooms by year-end 2025. The New York City market is followed by Dallas with 20 new hotels and 2,135 rooms, Atlanta with 19 new hotels and 2,245 rooms, Phoenix with 12 new hotels and 2,144 rooms, and Nashville with 12 new hotels and 1,527 rooms by year-end 2025.
Looking ahead to 2026, Phoenix is forecast to lead with the largest number of new hotel openings at 27 new hotels and 3,207 rooms, followed by Dallas with 26 new hotels and 2,595 rooms, Atlanta with 21 new hotels and 2,154 rooms, the New York City market with 14 new hotels and 2,452 rooms, and Nashville with 14 new hotels and 1,735 rooms forecast to open by year-end.
Releasing for the first time this quarter, the LE Forecast for New Hotel Openings in 2027 forecasts Dallas to lead with the largest number of new hotel openings at 35 new hotels and 3,694 rooms, followed by Inland Empire with 28 new hotels and 2,923 rooms, Atlanta with 24 new hotels and 2,396 rooms, Phoenix with 21 new hotels and 2,223 rooms, and Austin with 17 new hotels and 1,984 rooms forecast to open in 2027.