The top 25 U.S markets account for 33% of all pipeline projects and 37% of all rooms in the U.S hotel development pipeline. There are now nine markets in the United States with 20 or more projects under construction in their pipelines.
The markets with the most projects under construction are New York (95 projects), Atlanta (33 projects), Dallas (31 projects), Los Angeles (30 projects), and Austin (28 projects). Atlanta has the most projects set to begin development in the next 12 months, with 54 projects and 7,529 rooms.
Dallas comes second with 48 projects, followed by Los Angeles (47 projects), Phoenix (44 projects), and Houston (42 projects). After the third quarter, the top five markets with the most projects in the early planning stage were Dallas (68 projects), Los Angeles (56 projects), Atlanta (52 projects), Orlando (41 projects), and Washington D.C. (40 projects)
Increased demand for building materials and supply constraints in the aftermath of the Covid-19 outbreak has resulted in higher pricing and continue to be major obstacles for contractors, developers, and investors. Nonetheless, Dallas had the newest projects announced into the pipeline in the third quarter, with 18 projects. Atlanta comes in second with 17 projects, Phoenix comes third with 10 projects and Houston comes last with 9 projects.
The pipeline of renovations and conversions shows no signs of slowing. At the end of Q3’21, there were 1,253 hotels/176,305 rooms under renovation or conversion in the United States, and twenty-four of the top 50 markets in the United States had 10 or more hotels under repair or conversion.
The United States opened 665 new hotels with 85,306 rooms in the first three quarters of 2021. The markets with the newest opening in the first three quarters were New York City (21 hotels), Atlanta (21 hotels), Orlando (19 hotels), Houston (16 hotels), and Nashville (16 hotels).
In the third quarter of this year, the top 50 markets in the United States witnessed the opening of 98 hotels with a total of 15,454 rooms. In the third quarter, the United States had 189 hotels with a total of 25,995 rooms open.