Dallas Dominates Q2 Hotel Pipeline as 2028 Openings Forecast Reaches 832

Dallas leads the United States hotel construction pipeline at the close of the second quarter of 2026 with 183 projects and 22,840 rooms, driving a total national pipeline of 5,975 projects. Lodging Econometrics forecasts 832 new hotel openings nationwide by 2028, with development heavily concentrated in the upper midscale and upscale chain segments. [3]

Which U.S. markets hold the largest hotel development pipelines?

Dallas holds the top position for total pipeline volume, followed closely by Atlanta, Nashville, Austin, and Phoenix. Lodging Magazine reported that Dallas consistently leads the nation in construction activity. [1] According to Hotel-Online, the Dallas pipeline comprises 183 projects accounting for 22,840 rooms. [3] Atlanta follows with 157 projects and 17,423 rooms. [3] Nashville takes the third position with 122 projects and 16,281 rooms, while Austin has 116 projects with 13,875 rooms. [3] Phoenix rounds out the top five with 115 projects and 16,136 rooms. [3]

Several other markets reached record-high project and room pipeline totals at the end of the second quarter. Indianapolis reported 76 projects with 8,557 rooms. [3] Tampa reached 61 projects and 8,370 rooms, while St. Louis hit 59 projects and 6,373 rooms. [3] Oahu Island also achieved a record high with 11 projects comprising 2,850 rooms. [3]

How many total hotel projects are currently under construction nationwide?

Midway through 2026, developers have 1,081 hotel projects comprising 133,216 rooms actively under construction across the United States. BDC Network reported that the total U.S. pipeline stands at 5,975 projects with 703,001 rooms. [2] Projects slated to begin construction within the next 12 months total 2,147, representing 245,871 rooms. [2] Projects in the early planning stage account for 2,747 projects and 323,914 rooms. [2]

Dallas has the most active under-construction projects, with 38 properties totaling 4,184 rooms. [3] Phoenix follows with 31 projects and 4,621 rooms currently being built. [3] New York ranks third for active construction with 29 projects comprising 5,811 rooms. [3] Atlanta and Indianapolis tie for the fourth position regarding project count, with 22 projects each; however, Atlanta accounts for 3,020 rooms while Indianapolis has 2,311 rooms. [3]

Looking at projects scheduled to start construction in the next 12 months, Dallas again leads with 68 projects and 7,885 rooms. [3] Atlanta follows with 61 projects and 6,761 rooms, Austin with 59 projects and 6,542 rooms, Nashville with 49 projects and 6,623 rooms, and the Inland Empire with 43 projects and 4,545 rooms. [3] For early planning, Dallas tops the list with 77 projects and 10,771 rooms, followed by Atlanta with 74 projects and 8,351 rooms. [3]

Which chain scales are attracting the most development capital?

The upper midscale and upscale chain scales dominate the total U.S. construction pipeline, holding the greatest number of projects and rooms. The upper midscale segment stands at 2,225 projects and 214,027 rooms. [2] The upscale chain scale follows with 1,282 projects and 159,252 rooms. [2] Together, these two segments comprise 59 percent of all projects and 53 percent of all rooms in the total national pipeline. [2]

Higher-tier segments also achieved record highs during the second quarter. The luxury chain scale reached a record high project total with 103 projects and 25,496 rooms, representing a 12 percent year-over-year increase in projects and a 21 percent increase in rooms. [2] The upper upscale chain scale hit a record high as well, reaching 367 projects and 65,021 rooms. [2]

New project announcements in the second quarter totaled 280 projects and 33,423 rooms, reflecting an 18 percent increase in projects and a 23 percent increase in rooms year-over-year. [2] New York recorded the largest number of new project announcements with 11 projects and 2,296 rooms. [3] Tampa followed with 9 projects and 902 rooms, Phoenix with 8 projects and 1,641 rooms, Orlando with 8 projects and 1,292 rooms, and Nashville with 7 projects and 844 rooms. [3] Construction starts reached 176 projects and 20,056 rooms, up 14 percent in projects and 17 percent in rooms year-over-year. [2]

Where are renovations and brand conversions most active?

Houston leads the nation in combined hotel renovation and conversion activity with 35 projects and 4,841 rooms. [3] The Washington, DC-MD-VA market follows with 33 projects and 4,669 rooms. [3] San Antonio holds 32 projects with 3,041 rooms, Chicago has 31 projects with 5,732 rooms, and Atlanta reports 31 projects with 5,258 rooms. [3]

Nationwide, hotel conversions hit a record high at the end of the second quarter, totaling 1,567 projects and 152,044 rooms in the pipeline. [2] This represents a 15 percent year-over-year increase in projects and an 18 percent increase in rooms. [2] Together, hotel conversions and renovations represent 2,097 projects and 255,834 rooms across the United States, with combined project counts up 7 percent year-over-year. [2]

What is the projected timeline for new hotel openings through 2028?

The U.S. hotel industry will see 661 new hotels with 74,820 rooms open by the end of 2026, representing a 1.3 percent growth rate. During the first and second quarters of 2026, 277 new hotels with 31,416 rooms opened across the country. [2] The forecast for the remainder of 2026 includes the opening of another 384 projects with 43,404 rooms. [2] Phoenix leads the 2026 year-end forecast with 26 projects and 3,615 rooms, followed by New York with 20 projects and 3,079 rooms, and Dallas with 20 projects and 2,332 rooms. [3]

For 2027, the forecast anticipates 738 new hotels and 78,909 rooms to open, yielding a 1.4 percent growth rate. [2] Dallas is projected to lead 2027 openings with 27 projects and 2,486 rooms. [3] Atlanta follows with 22 projects and 2,145 rooms, Phoenix with 16 projects and 1,989 rooms, Nashville with 16 projects and 1,853 rooms, and Indianapolis with 15 projects and 2,154 rooms. [3]

The newly released forecast for 2028 estimates 832 projects and 88,321 rooms will open in the U.S., resulting in a 1.5 percent growth rate. [2] Atlanta will lead the 2028 openings with 25 projects and 2,345 rooms. [3] Dallas follows with 19 projects and 2,042 rooms, Saint Louis with 14 projects and 1,438 rooms, Austin with 14 projects and 1,344 rooms, and Memphis with 14 projects and 1,233 rooms. [3]