Dallas is a top market for hotel projects
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There were more hotels in the works in the Dallas market than any other U.S. area in the first quarter of 2024, according to a Lodging Econometrics report.
Why it matters: The country reached an all-time high with 6,065 hotel projects in the pipeline.
- The Dallas data suggests investors favor the region for new hospitality projects.
State of play: Dallas led the country with 185 hotel projects — around 21,900 rooms — planned in the first quarter of 2024.
- Atlanta had 153 projects in the works, followed by Nashville's 127 and Phoenix's 123.
Meanwhile: Dallas ranked second for hotels under construction — 25 projects — at the end of the first quarter. New York was first, with 47.
- Dallas also had the most projects in early planning and projects scheduled to start in the next 12 months.
Zoom in: The Hall Park Hotel, featuring modern art, is slated to open in Frisco this fall.
- A new Four Seasons Hotel and condominium tower is also planned along Turtle Creek in Dallas.
Flashback: The Dallas market had a "record-breaking" outlook in the fourth quarter of 2023, with 193 hotel projects — around 22,300 rooms.
- The 2024 first-quarter data shows some of that activity has slowed, even though Dallas remains a top market for hotel construction.
Between the lines: The Dallas area's leisure and hospitality sector has gotten stronger in recent years, fueled by new hotels and large sporting events.
- Employment in Dallas-Fort Worth's leisure and hospitality sector grew 3.6% in the fourth quarter of 2023, per a Dallas Federal Reserve Bank analysis.
- By comparison, it grew 1.1% in the fourth quarter of 2022.