PORTSMOUTH, N.H. — Lodging Econometrics (LE) reported that at the close of Q3 2020, Dallas had the largest hotel construction pipeline in the United States with 154 projects/18,592 rooms. Los Angeles followed with 150 projects/25,188 rooms, then New York City with 144 projects/25,147 rooms, Atlanta with 134 projects/18,670 rooms, and Houston with 109 projects/11,384 rooms. These top five markets accounted for 15 percent of the rooms in the total U.S. pipeline. Twenty of the top 50 markets in the United States had more than 50 projects in their total hotel construction pipelines.
Seven U.S. markets had 30 or more projects currently under construction at the close of Q3 2020. New York City continued to have the greatest number of projects under construction with 105 projects/18,453 rooms. Atlanta followed with 44 projects/6,483 rooms, and then Dallas with 42 projects/5,086 rooms currently under construction in its hotel pipeline. Next was Los Angeles with 41 projects/7,278 rooms, then Nashville with 33 projects/5,532 rooms, Orlando with 31 projects/5,107 rooms, and Austin with 30 projects/5,228 rooms. Of the top 50 Markets in the United States, 20 markets, including the seven listed above, had 20 or more projects currently under construction at the end of the third quarter.
Despite the impact that COVID-19 has had on operating performance, hotel development, renovation, and conversion activity continues in the industry, as evidenced by the number of hotels that opened in Q3. The top 50 markets in the United States saw 140 hotels /17,195 rooms open in Q3 2020. The country as a whole had 280 hotels/31,271 rooms open in Q3 2020. Additionally, 1,259 hotels/207,544 rooms were under renovation or conversion at the end of the third quarter. Eleven of the top 50 markets in the United State had 10 or more hotels undergoing renovation or conversion activity currently.