Dallas leads nation in hotel projects in the pipeline

The pipeline of hotel construction in the Dallas market was so packed during the first quarter that no other U.S. metro could top it.

Some 165 projects with 19,730 total rooms were in the Dallas construction pipeline during the first quarter, New England-based Lodging Econometrics said in a report released this week. Behind Dallas was Atlanta with 135 projects; Los Angeles with 123 projects; New York with 122 projects; and Phoenix with 103 projects.

Dallas also came in No. 1 with the most projects in early planning and the most hotel developments expected to begin construction in the next year, the firm reported. The New York market had the most projects already under construction in the first quarter.

Hotels were among the hardest-hit during the pandemic as lockdowns and business trip cancellations brought hotel reservations to a halt. Most area hotel developers hit the pause button on new projects during the early stages of the pandemic, though it appears many developers are preparing to resume those plans.

Across the U.S., Lodging Econometrics reported 5,090 projects in the construction pipeline last quarter, which shows a small increase year-over-year. Those projects include 606,302 rooms in total. Hotel franchises Marriott International, Hilton Worldwide and InterContinental Hotels Group accounted for 67 percent of the total projects across the country’s pipeline last quarter, according to the report.

One hotel project underway is the more than $125 million JW Marriott in downtown Dallas. Sam Moon Group’s project broke ground last year and is expected to open next year. The 15-story hotel will sit atop a 10-story parking garage at Ross Avenue and Harwood Street.

Last year’s hotel revenues in Dallas were still about 20 percent less than before the pandemic. The luxury hotel industry, which relies on business and convention travelers, has been slower to recover.