Lodging Econometrics’ latest U.S. Construction Pipeline Trend Report highlights continued strength in hotel development across major metropolitan markets, with Dallas maintaining its position as the nation’s top market and Phoenix emerging as the fastest-growing hub.
At the close of the first quarter of 2026, Dallas led all U.S. markets with 184 hotel projects totaling 22,861 rooms in its development pipeline. Atlanta followed with 158 projects and 17,524 rooms, while Phoenix ranked third with 123 projects and 16,111 rooms. Nashville and Austin rounded out the top five markets.
While Dallas continues to dominate in overall volume, Phoenix is showing the strongest growth trajectory. The market posted a 19% year-over-year increase in projects under construction and an 11% rise in rooms, signaling robust development momentum.
Dallas again led in active construction, with 37 projects comprising 4,111 rooms underway. Phoenix followed closely with 36 projects and 5,096 rooms, while New York City recorded 26 projects totaling 4,636 rooms. Miami and Atlanta also ranked among the top markets for active construction.
The report also shows strong forward-looking activity. Dallas leads in projects scheduled to begin within the next 12 months, with 68 developments totaling 7,909 rooms. Atlanta, Austin, the Inland Empire and Nashville followed closely. Austin, in particular, posted notable growth, with a 19% increase in projects and a 14% rise in rooms in this category.
Early planning activity remains high across major markets. Dallas again topped this category with 79 projects totaling 10,841 rooms, followed by Atlanta and Nashville. Phoenix continued its upward trend, recording a 13% increase in projects and a 28% surge in rooms in early planning stages.
Across the top 50 U.S. markets, developers announced 75 new hotel projects representing 12,137 rooms during the first quarter of 2026. Phoenix led new project announcements with nine developments, followed by Tampa with six. Several other major markets — including New York City, Nashville, Chicago, Atlanta, the Inland Empire and Indianapolis — each recorded four new project announcements.
Renovation and brand conversion activity also remained strong nationwide. Houston led with 35 projects, followed by Dallas, Atlanta and Washington, D.C.. San Antonio also reported significant renovation activity.
Looking ahead, Phoenix is forecast to lead the nation in hotel openings in 2026, with 27 new hotels totaling 3,640 rooms. New York City, Dallas and Austin are also expected to see significant openings. By 2027, Dallas is projected to regain the top spot for new hotel openings, followed by Atlanta and Phoenix.
The report underscores sustained investor confidence in hospitality development, particularly in high-growth Sun Belt markets where population growth, tourism and business travel continue to drive demand.
Originally reported by Lodging Econometrics in Hospitality Net.
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