The volume of hotel rooms currently being built in the United States hit its highest level in 16 months, according to CoStar’s latest June 2024 data. While globally, the real estate information and analytics company finds hotel construction has dropped or leveled off, the U.S. has more than 157-thousand rooms under construction, and another 600,000 in the planning stages.
Even though numbers have not fully rebounded to pre-pandemic levels (the U.S. peaked at 220,000 new rooms opened in April 2020), they demonstrate strong demand despite the headwinds of inflation and high interest rates.
U.S. Cities Leading the Hotel Growth
According to a recent Lodging Econometrics report, Dallas dominated the U.S. charge with 22,392 rooms in the works. It’s the fastest-growing metro area in the U.S., and there are 189 new projects on the horizon.
Dallas is followed by Atlanta, the third-fastest growing metro area in the U.S., which has 159 new projects planned, comprised of 18,522 rooms.
California’s Inland Empire set a new record with 124 projects and 12,569 rooms.
Luxury, extended-stay, and residential hotels are anchoring the growth, as well as an influx of new hotels designed for large gatherings.
Luxe Residential Hotel Developments on the Rise
The Auberge Resorts Collection will open The Knox in Dallas in 2026. This boutique 5-star hotel, billed as a high-end retreat in the heart of the ritzy Knox Street area, will feature 140 rooms, 48 private residences, and over 3 acres of retail and dining along the popular Katy Trail.
One of the most anticipated new hotels in the U.S. is the $750 million Four Seasons Turtle Creek. It is expected to open in 2027 with 230 rooms, including 118 private homes. At 35 stories, it will be the tallest building in Turtle Creek and alter the Dallas skyline. Conceptual designs show culinary reasons to take note of its development. The hotel will house Zuma, a multiple award-winning Japanese restaurant with 14 locations globally.
From the AIC Hotel Group — chef Nobu Matsuhisa, actor Robert De Niro, and producer Meir Teper — Nobu is set to open a hotel near Orlando’s theme parks in 2026 with an estimated $75 million price tag. It will offer 300 rooms, including eight villas and 50 residences.
Further west, Grand Hyatt Deer Valley is slated to open in late 2024 in Park City, Utah. As part of Deer Valley Resort’s expansion, the hotel will coincide with the addition of 16 new ski lifts and a 10-passenger gondola. The largest hotel under construction in Utah, the Grand Hyatt Deer Valley will feature 442 rooms and 55 private residences.
A prospective Ritz-Carleton project in Nashville has stalled, but other high-end offerings still make headlines. The St. Regis Hotel and Residences is expected to break ground downtown in 2025. Early plans show the building will be 39 floors, with 177 hotel rooms and 111 on site residences, as well as a fine dining restaurant and a full-service spa.
The Boutique Hotel Boom
The Joie de vivre (JdV) by Hyatt recently announced it will build the $30 million, 125-key Chambray Hotel in the quaint suburb of Roswell, designed to honor the area’s milling past. It’s set to be a 5-story mixed-used building and should be completed by 2025. Hyatt plans to include a ground-level restaurant by Atlanta’s Indigo Group, a rooftop café, a 24-hour market, a fitness center, and meeting space.
The recently completed Forth Atlanta, a $150-million, 196-room, 16-floor luxury boutique hotel development, opened this summer in Atlanta’s historic Fourth Ward neighborhood. Thirty-nine of its rooms are designed for extended stays. The hotel will also house a member-only club and four restaurants.
New York’s hotel scene is never dull, and there are a few buzzy properties in the works. The little-known Marin Architects, under the H Hotel LLC, are building the 42-story tower with 173 luxury guest suites off 39th Street, overlooking Bryant Park, for mid-2025 completion. The building will have a presence on the park’s iconic skyline, featuring an up-lit cantilevered cap and rooftop bar. Down below, there are plans for restaurants and an outdoor plaza.
The Chloe Nashville is an upcoming boutique hotel set to open in late 2024 in Hillsboro Village, just south of Music Row. It will be an intimate property with just 19 guestrooms in two historic Craftsman-style homes, along with a newly constructed third building that will add ten more guestrooms, a restaurant kitchen, and an outdoor pool bar.
New Hotels Catering to Gatherings
In Downtown Atlanta, the $155 million Anthem boutique hotel is expected to open in 2025 with 292 rooms as part of the Centennial Yards mixed-used development. Located across the street from Merecedez-Benz Stadium, it will open in time for Atlanta to host several World Cup games.
The largest new project set to open is Marriott’s 1,600-room Gaylord Pacific Resort & Convention Center in Chula Vista, California. Expected to open in Spring 2025, it is a few miles from downtown San Diego and includes nearly 500,000 feet of indoor and outdoor meeting spaces.
The VAI Resort in Glendale, Arizona, with 1,100 rooms, is the second-largest U.S. hotel under construction and is set to open in phases starting in 2025. The $1 billion, 60-acre resort will be the largest in Arizona. It will feature four towers, a $40 million, 360-degree concert stage, and a 52,000-square-foot party island in a 6-acre lagoon. Located across from the soon-to-open Mattel Adventure Park, it aims to attract both locals and families.
Hotels in the Works Outside the U.S.
The surge in new hotels is less pronounced elsewhere across the American continents but still significant.
Of note, Posadas and Grupo Xtra, a real estate services company, will add 1,053 rooms to the Riviera Maya, Mexico, when they develop Live Aqua Riviera Cancún in 2025 and Grand Fiesta Americana Riviera Cancún All Inclusive Resort & Spa in 2026. The two resorts are expected to cost $300 million.
Tennis star Raphael Nadal, who teamed up with Spanish hotel brand Meliá to launch the Zel brand of boutique hotels, plans to open their first property in Mexico in 2025 — the 145-room Zel Sayulita on Mexico’s west coast state of Nayarit.
New York’s Hudson Hotel has plans to open its first property outside the U.S. in Toronto with a 14-story, 146-key tower. Minor Hotels has plans for a second Anantara property in Ceará, Brazil, known for its golden sandy beaches.
