A Booming Hotel Market
Dallas is driving the U.S. hotel industry forward in 2025, boasting a record-breaking pipeline of 199 hotel projects with nearly 24,500 rooms, according to the Q2 2025 U.S. Hotel Construction Pipeline Trend Report by Lodging Econometrics. The city outpaces other major markets like Atlanta, Nashville, Austin, and Phoenix, solidifying its position as the nation’s leader in hotel development. This surge reflects strong demand for travel and hospitality in Dallas, fueled by its growing economy and appeal to both business and leisure visitors.
Robust Construction and Future Plans
The city’s hotel construction scene is thriving. Dallas ranks third in active construction projects, with 32 projects and 3,804 rooms underway, trailing only Phoenix and New York City. Looking ahead, Dallas leads with 78 projects and over 8,600 rooms scheduled to start within the next 12 months. Additionally, the city tops the list for projects in the early planning stage, with 89 projects accounting for 12,090 rooms. This robust pipeline signals confidence in Dallas’s hospitality market through 2027, with forecasts predicting 35 new hotels and nearly 3,700 rooms opening by that year.
New Openings and Renovations
Dallas is not just building new hotels; it’s also refreshing existing ones. In the first half of 2025, the city saw 10 new hotels open with 964 rooms, ranking second behind Atlanta. By year-end, Dallas is expected to add 20 more hotels with 2,135 rooms, contributing to a national total of 735 new hotels and 84,788 rooms in 2025. Renovations and conversions are also strong, with nearly 2,000 active projects nationwide upgrading over 259,000 rooms. While markets like Washington, D.C., and Atlanta lead in renovations, Dallas remains a key player in this trend, blending modern upgrades with new developments.
Why Dallas Stands Out
Several factors drive Dallas’s dominance in hotel construction. The city’s strong economy, strategic location, and growing tourism sector make it a hotspot for developers. “Dallas continues to invest in and meet the demand for travel to our incredible city,” said Craig Davis, president and CEO of Visit Dallas. The city’s appeal spans leisure and business travelers, with new properties like the JW Marriott adding to its diverse accommodations. The focus on upper midscale and upscale hotel segments, which account for 52% of the global pipeline, aligns with Dallas’s growth, catering to a wide range of travelers seeking quality and comfort.
A Bright Future for Hospitality
The outlook for Dallas’s hotel industry remains strong. Lodging Econometrics forecasts that the city will continue leading new hotel openings through 2026, with 26 new hotels and 2,595 rooms expected. This sustained growth highlights Dallas’s role as a hospitality powerhouse. As the city builds and renovates, it sets the stage for increased tourism and economic activity, benefiting hotels, suppliers, and local businesses alike.
Industry-Wide Trends
Nationwide, the U.S. hotel construction pipeline hit a record high in Q2 2025, with 6,280 projects and 737,036 rooms, a 3% increase in projects and 2% in rooms year-over-year. Upper midscale and upscale segments dominate, reflecting a shift toward quality accommodations. Globally, the pipeline reached 15,871 projects, with the U.S. accounting for 40% of the total. Dallas’s leadership in this competitive landscape underscores its pivotal role in shaping the future of hospitality.
