Los Angeles Has The Largest US Hotel Construction Pipeline
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According to the third quarter construction pipeline trend report published by Lodging Econometrics, the top five markets with the largest hotel construction pipelines by projects is led by Los Angeles with 161 projects/26,670 rooms. Next are New York and Dallas with 155 projects/26,605 rooms and 160 projects/20,020 rooms, respectively. Houston follows with 138 projects/14,130 rooms, and Atlanta with 137 projects/18,396 rooms.
The total pipelines for the top 25 markets account for 39.7% of all pipeline rooms and when built out represent a potential growth rate of 15.9% over all existing open and operating rooms (census). While overall supply growth has risen to 2.0% year to date in 2019, it’s 2.5% in the top 25 markets and 1.7% in the other markets nationwide.
In the first three quarters of 2019, the U.S. opened 704 new hotels with 81,111 rooms. The markets with the highest number of new openings are New York City with 28 hotels/4,513 rooms, Dallas with 26 hotels/3,073 rooms, Houston with 18 hotels/2,285 rooms, Boston with 16 hotels/2,435 rooms and Nashville with 15 hotels/1,965 rooms. These 5 markets alone account for 15% of all new hotels that opened in the U.S. through the end of the third quarter.