Room for growth
A hotel boom is underway in the Austin area. As of the second quarter of 2022, 80 projects featuring 10,306 guest rooms were in the planning or development stages in the Austin area, according to a new report published by hospitality data provider Lodging Econometrics.
Austin ranks 10th in the U.S. for hotel construction.
Dallas leads all U.S. regions, with 173 hotel projects with 20,707 guest rooms in the pipeline. Big D is followed by Atlanta, Los Angeles, New York City, and Nashville, the report says.
“While some might expect Miami or New York City to lead the U.S. in terms of the number of hotel projects underway, that distinction actually belongs to Dallas … ,” says The Points Guy travel blog, which points out that Dallas has led all U.S. locations in hotel development for four consecutive quarters.
Elsewhere in Texas:
- Houston ties for seventh place, with 94 projects featuring 10,247 guest rooms
- Fort Worth-Arlington ranks 15th, with 65 projects with 8,005 guest rooms
- San Antonio ranks 21st, with 46 projects featuring 5,116 guest rooms
Brian Hughes, managing director of JLL Hotels & Hospitality, tells the travel blog that “a heavy trend of corporate and population migration to Texas” has lifted hotel performance in the state as the COVID-19 pandemic wanes.
Another plus, it says, is Texas’ business-friendly tax structure. This draws companies to the state, which then feeds demand for hotel rooms to accommodate business travelers.
“Encouraged by 2022’s upward trend in hotel performance, owners, management groups, developers, and investors are moving forward with development plans as evidenced by increasing counts at every stage of construction,” Lodging Econometrics says.