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The Five U.S. Cities Leading the Way in Hotel Construction

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According to Lodging Econometrics, as the U.S. economy remains strong, the hotel construction pipeline continues to show moderate quarterly growth. Total projects stood at 5,312 and 634,501 rooms at the end of June, which is a seven percent increase over 2017. Of course, some metropolitan areas are seeing more growth than others. Here are the five U.S. cities currently leading the way in hotel construction:

  1. New York City: With 169 projects/29,365 rooms, NYC has the largest hotel construction pipeline in the country. The Real Deal reports that 20 percent of dwelling units under construction in the Big Apple are hotel rooms — not apartments. That’s an increase of more than 100 percent compared to five years ago.
  2. Dallas: With 156 projects/18,908 rooms, Dallas is experiencing significant growth in the hotel industry. Several new big brand hotels have recently been developed or are currently in development there, including the Virgin Hotel Dallas and the Canopy by Hilton Dallas Frisco Station.
  3. Houston: With 150 projects/16,321 rooms, Houston is the third largest hotel construction pipeline in the U.S. and the second largest in Texas. For example, the new Marriot Marquis Houston opened recently, and construction is set to begin on a new Holiday Inn Express soon.hotel remodeling contractor
  4. Nashville: With 123 projects/16,392 rooms, Nashville is projected to increase it’s room supply by almost 40 percent, which is by far the largest increase of dwelling units in the U.S. this year. In fact, Tennessean reports that 15 hotels are expected to open in the city this year alone.
  5. Los Angeles: With 121 projects/18,037 rooms, LA’s hotel construction business is booming. According to LA Downtown News, recent construction projects include the NoMad Hotel and Hotel Figueroa. When it comes to hotels currently under construction, Kimpton’s La Peer is set to open in West Hollywood before the end of the year, as is the Park Hyatt Los Angeles, amongst others.

With a total of 45 projects/7,762 rooms, New York is likely to top the list of new hotels opening in 2018. Dallas and Houston are expected to take second and third place with 33 projects/3,813 rooms and 27 projects/3,114 rooms respectively. Experts predict that in 2019, NYC will lead the way again with 52 projects/7,356 rooms, and in 2020, Dallas will top the list with 40 projects/4,943 rooms.

For more information on hotel construction or renovation, please contact our offices in New York or Los Angeles. InterServ has over 15+ years in the hospitality industry as a leading hotel remodeling company. Please check out our portfolio of brands we serve for our happy clients across the country.