Dallas Holds Largest Overall Pipeline
Dallas had 184 hotel projects containing 23,646 rooms in its construction pipeline at the end of the third quarter of 2026, the largest total among U.S. markets tracked by Lodging Econometrics. The pipeline includes hotels under construction, projects expected to begin construction within the next year, and developments in early planning.
Atlanta ranked second, with 154 projects and 16,938 rooms. Nashville followed with 122 projects and 16,197 rooms, while Austin recorded 112 projects and 13,169 rooms. Inland Empire ranked fifth with 110 projects totaling 10,909 rooms.
The figures show that Texas markets, particularly Dallas and Austin, remain active locations for proposed hotel development. Atlanta and Nashville also maintained large pipelines, indicating continued development activity across major metropolitan areas in the South and Southeast.
Construction Activity by Market
Dallas also led the country in hotel projects already under construction, with 36 projects totaling 3,764 rooms. New York ranked second in rooms under construction, with 28 projects totaling 6,965 rooms. Although New York had fewer active projects than Dallas, its developments averaged more rooms.
Phoenix ranked third with 25 projects and 3,992 rooms under construction. Atlanta had 24 active projects totaling 2,412 rooms, while Indianapolis recorded 22 projects and 3,065 rooms.
The construction figures represent projects that had moved beyond planning and entered the building phase by the close of the third quarter. They do not guarantee opening dates, as financing, permitting, labor availability, and construction conditions can affect development schedules.
Projects Scheduled to Begin Construction
Dallas had 72 hotel projects with 8,544 rooms scheduled to begin construction during the next 12 months, the highest total in the survey. Atlanta followed with 57 projects and 6,633 rooms. Austin had 55 projects totaling 5,855 rooms, while Nashville recorded 53 projects with 6,994 rooms.
Inland Empire ranked fifth in this category, with 46 projects and 4,803 rooms expected to start construction. The number of projects at this stage suggests Dallas, Atlanta, Austin, and Nashville could continue adding hotel supply if the proposed developments proceed as scheduled.
Projects listed as scheduled to start are at a less advanced stage than those already being built. As a result, the number of projects that ultimately begin construction may change over time.
Early Planning and New Announcements
Dallas also had the most projects in early planning, with 76 projects and 11,338 rooms. Atlanta followed closely with 73 projects totaling 7,893 rooms. Orlando and Inland Empire each had 51 projects in early planning, though Orlando’s projects accounted for 12,253 rooms, compared with 5,001 rooms in Inland Empire.
Nashville ranked fifth, with 48 projects and 6,648 rooms in early planning. These developments still require approval, financing, site acquisition, and other requirements before construction can begin.
Dallas and Atlanta each announced eight new projects in the third quarter. Dallas’s newly announced projects accounted for 1,908 rooms, while Atlanta’s contained 704 rooms. Tampa, Indianapolis, and Cincinnati each had five new announcements. Across the 50 largest U.S. markets, 86 new hotel projects with 11,089 rooms entered the pipeline during the quarter.
Renovation, Conversion, and Hotel Openings
Washington, DC-MD-VA led the combined renovation and conversion pipeline with 32 projects totaling 4,325 rooms. Atlanta and Houston each had 31 renovation or conversion projects, containing 5,258 and 4,426 rooms, respectively.
Dallas, Chicago, and San Antonio each recorded 30 renovation or conversion projects. Dallas had 5,306 rooms associated with those projects, Chicago had 5,287 rooms, and San Antonio had 2,935 rooms.
During the third quarter, 56 hotels with 6,664 rooms opened across the 50 largest U.S. markets. Phoenix opened six hotels containing 612 rooms. Dallas opened four hotels with 621 rooms, while Inland Empire and Atlanta each opened four hotels, with 425 and 421 rooms, respectively.
Forecast for 2026 and 2027
Phoenix is expected to lead U.S. markets in new hotel openings by the end of 2026, with 25 projects and 3,517 rooms forecast to open. Dallas is projected to rank second, with 18 projects totaling 2,050 rooms. New York is expected to add 14 projects and 2,495 rooms.
For 2027, Dallas is forecast to lead new hotel openings with 28 projects and 2,604 rooms. Atlanta is projected to follow with 20 projects and 1,937 rooms. Phoenix, Indianapolis, and New York are also expected to record substantial hotel openings, based on projects currently advancing through the development pipeline.