U.S. Hotel Projects at All-Time High

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Hotel construction in the U.S. hit new historic levels in the fourth quarter of 2024.

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The Q4 U.S. hotel pipeline recorded 6,378 projects, representing 746,986 rooms. Upper-midscale hotels led all segments with 2,354 projects (227,845 rooms), followed by upscale hotels with 1,471 projects (182,474 rooms). The top five markets were Dallas, Atlanta, Nashville, Phoenix, and California’s Inland Empire.

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Are we overbuilding? No, U.S. hotel growth has followed closely with the population aged 16+.

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Several factors are driving developer interest in U.S. hotels, but none are more significant than the return of corporate demand/group business. In 2024, the last four days of the week saw a 17.9% increase in group demand compared to the prior year.

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Corporate travel is back – boosting hotel construction, airline profits, and the broader economy.