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NEW YORK LEADS the top 50 U.S. markets in hotel construction with 47 projects and 7,655 rooms currently underway, according to Lodging Econometrics. The city has a total of 78 projects and 13,549 rooms in its hotel construction pipeline, the 10th largest in the U.S. Projects set to start in the next 12 months include eight projects with 1,079 rooms, while early planning includes 23 projects with 4,815 rooms, according to LE's Q1 2024 Market Trend Report for New York, released before the NYU International Hospitality Industry Investment Conference. Within the New York market, the three submarkets with the largest hotel construction pipelines are the New York City area (including Brooklyn East, the Bronx, and Staten Island) with 25 projects and 2,096 rooms, the report said. Similarly, the Midtown South area features 11 projects and 2,535 rooms, while the Midtown West/Times Square area has 10 projects and 4,131 rooms. Combined, these submarkets account for 59 percent of the projects and 65 percent of the rooms in the market's total construction pipeline.

THE TOP FIVE U.S. markets with the largest hotel construction pipelines are led by Dallas with 189 projects and a peak of 22,392 rooms in the second quarter of 2024, according to Lodging Econometrics. That is four projects shy of its end of fourth quarter 2023 record. Atlanta follows with a record 159 projects and 18,522 rooms. The Inland Empire ranks third with a record 124 projects and 12,569 rooms, while Nashville has 123 projects and 15,924 rooms and Phoenix boasts 120 projects and 15,627 rooms. LE's Q2 2024 U.S. Construction Pipeline Trend Report revealed that 10 states-Texas, California, Florida, Georgia, Tennessee, North Carolina, Arizona, New York, Alabama and Michigan-account for 60 percent of the rooms in the pipeline.

THE U.S. IS expected to see 953 hotel openings with 108,366 rooms in 2025, with New York City and Nashville leading at 5,719 and 2,849 rooms, respectively, according to CoStar. Around 1,865 hotels with 198,319 rooms are projected to open in 2026. Other markets, including San Diego, Dallas, and Phoenix, are projected to open 5,719, 2,849, and 2,818 rooms in 2025, the report said. "The ongoing development in New York City is not surprising given the market's status and its high performance in recent years," said Isaac Collazo, STR's senior director, analytics. "With major sources of leisure and business travel, New York reported the highest occupancy level of any U.S. market in both 2023 and 2024. Though fewer rooms are in construction compared to 2023, more are in the planning and final planning stages, pointing to continued investment in the long term."

DALLAS LEADS THE top five U.S. markets in the largest construction pipeline as of the first quarter of 2024, according to Lodging Econometrics. The Dallas market has 185 projects with 21,882 rooms, slightly below the record highs at the close of the fourth quarter of 2023. Next came Atlanta, with 153 projects comprising 17,929 rooms, then Nashville with 127 projects and 16,199 rooms, as LE's U.S. Construction Pipeline Trend Report showed. Phoenix followed with 123 projects and 16,198 rooms, and the Inland Empire in Southern California set a new record high with 121 projects and 12,324 rooms. U.S. markets with the most projects already under construction by the end of the first quarter include New York with 47 projects and 7,655 rooms, Dallas with 25 projects and 3,059 rooms, and Nashville with 22 projects and 2,828 rooms. Atlanta had 21 projects and 2,588 rooms, and the Inland Empire currently has 20 projects and 2,181 rooms under construction.

HOTELS IN THE Americas performed above 2019 levels, although RevPAR is stabilizing amidst decreasing consumer travel spending, according to real estate firm JLL. This has affected resort markets heavily dependent on leisure travel. In contrast, urban travel demand is on the rise, driven by group, corporate, and inbound international travel. According to JLL's Global Real Estate Perspective for February 2024, global hotel RevPAR surpassed 2019 levels by 11.7 percent in the first 11 months of 2023. The global urban market strengthened with increased international travel and the return of business and group demand. London, New York, and Tokyo are expected to lead global RevPAR performance in 2024 as urban travel rebounds. Stabilization has weighed heaviest in resort markets, particularly in the Americas and EMEA, while Asia-Pacific continues to accelerate as intraregional travel grows following border reopenings, the report added. Foreign capital, absent since the onset of COVID, is expected to become more active over the next 12 months. Middle Eastern and Asian investors are likely to lead, with urban markets in Europe and select U.S. cities as primary recipients of capital.

EXCEL GROUP, A Virginia-based private equity firm, acquired the 209-room Embassy Suites by Hilton Syracuse Destiny USA in Syracuse, New York. The hotel, one of the newest in the greater Syracuse market, is located near Destiny USA shopping and entertainment complex, Excel Group said in a statement. Excel Group is led by Shoham Amin as founder and principal. "We are thrilled to acquire the Embassy Suites by Hilton Syracuse Destiny USA, the premier hotel in the market," said Amin. "This property is strategically positioned to benefit from Syracuse's ongoing resurgence. This investment allows us to capitalize on the recent supply and demand imbalance caused by hotel closures in the area. Historically, this market has been stable, driven by healthcare and education sectors, and is now poised for significant growth with Micron's upcoming construction."