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 market tracts with the most projects currently under construction are the New York City area with 16 projects and 1,261 rooms, Midtown South with seven projects and 1,515 rooms, and the JFK Airport/Jamaica area with seven projects and 851 rooms, LE said.
In the first quarter of 2024, the New York market surpassed all others in the U.S. by adding the highest number of new projects, totaling 12 with 1,660 rooms, the report said. It also led in construction starts during the first quarter of 2024.
The market also reported significant conversion and renovation activity at the end of the first quarter of 2024, ranking as the third-largest market in the U.S. by project volume, with a combined total of 30 projects and 8,020 rooms.
The New York market ranked seventh among the top 50 U.S. markets for newly opened hotels in the first quarter of 2024, LE report said. Forecasts suggest it will lead the nation in hotel openings for the remaining three quarters of the year.
LE forecasts a total of 26 projects with 2,910 rooms opening in the market in 2024, while the market is projected to rank sixth in forecasted new hotel openings, with 17 projects totaling 2,409 rooms in 2025.
LE recently reported that Dallas leads the top five U.S. markets in the largest construction pipeline as of the first quarter of 2024, with 185 projects and 21,882 rooms, slightly below the record highs from the fourth quarter of 2023.
