After a 1.2 percent year-over-year increase in 2024 U.S. hotel supply, the hotel development pipeline remains strong, particularly for projects in the planning stages, according to a new report from Lodging Econometrics.
Total fourth-quarter 2024 projects in the U.S. hotel development pipeline reached a count of nearly 6,380, totaling nearly 747,000 rooms, up 7 percent and 8 percent year over year, respectively.
A bit less than 3,000 of those projects totaling more than 345,600 rooms were in the early planning stages, each an "unprecedented" figure and up 15 percent and 19 percent, respectively, according to Lodging Econometrics.
About 1,150 hotels currently are under construction, totaling about 142,200 rooms, according to Lodging Econometrics, which in a statement said was "reflecting a healthy increase" year over year.
Dallas in the fourth quarter once again led the U.S. as the city with the most hotels in the pipeline, with 204 projects and nearly 23,700 rooms, according to Lodging Econometrics. The city has led all others in pipeline count since the second quarter of 2021, when New York led.
Atlanta finished the third quarter second to Dallas in terms of hotel development, with 168 properties comprising more than 19,400 rooms in the pipeline. Atlanta was followed by Nashville, with 130 properties in the pipeline with more than 17,000 rooms. Phoenix also tallied 130 properties in the pipeline, with more than 16,800 rooms.
"These project counts underscore unprecedented future growth in the U.S. hotel sector, with the South and Southwest regions leading the way," according to Lodging Econometrics.
In 2024, 583 hotels totaling nearly 68,000 rooms opened in the United States, according to the company. Lodging Econometrics forecasts accelerating growth in the next two years, projecting the U.S. hotel supply to increase 1.5 percent year over year in 2025 and 1.7 percent in 2026.