DALLAS – North Texas led the country in hotel development in first quarter 2023, according to Lodging Econometrics, with a record 251 projects on the way in Dallas-Fort Worth.
Of those, 184 were in Dallas and the rest were in Fort Worth. These will add 30,000 rooms to the area when completed.
Atlanta had the second-most number of projects (144), followed by Los Angeles (118).
However, Texas hotel consultant John Keeling said he expects activity to slow.
“The twin headwinds of dramatically higher construction costs—about a 40 percent increase since 2020—and a doubling of interest rates on construction loans have made most projects infeasible,” he said. “Even for those that pencil out, the banks are out of the hotel lending business, at least for now.”