Room for growth
A hotel boom is underway in the Dallas area.
As of the second quarter of 2022, 173 hotel projects with 20,707 guest rooms were in the planning or development stages in the Dallas area, according to a new report published by hospitality data provider Lodging Econometrics.
Dallas leads all U.S. regions based on the number of hotel projects in the pipeline, followed by Atlanta, Los Angeles, New York City, and Nashville, the report says.
“While some might expect Miami or New York City to lead the U.S. in terms of the number of hotel projects underway, that distinction actually belongs to Dallas … ,” says The Points Guy travel blog.
The Points Guy points out that Dallas has led all U.S. locations in hotel development for four consecutive quarters.
Brian Hughes, managing director of JLL Hotels & Hospitality, tells the travel blog that “a heavy trend of corporate and population migration to Texas” has lifted hotel performance in Dallas as the COVID-19 pandemic wanes.
Another plus for Dallas, it says, is Texas’ business-friendly tax structure. This draws companies to the state, which then feeds demand for hotel rooms to accommodate business travelers.
Other regions of the state also are benefiting from the moving-to-Texas trend when it comes to hotel development. But Dallas far and away leads the state’s pack in this regard. And Big D’s hotel sector stands to enjoy even more of a boost when the city’s new $2 billion, 2.5-million-square-foot convention center is completed in 2029, reports say.
In the Lodging Econometrics survey, Fort Worth-Arlington ranks 15th for the number of hotels in the pipeline — 65 projects with 8,005 rooms. Elsewhere in Texas:
- Houston ties for seventh place, with 94 projects featuring 10,247 guest rooms
- Austin ranks 10th, with 80 projects featuring 10,306 guest rooms
- San Antonio ranks 21st, with 46 projects featuring 5,116 guest rooms