Writer: Jerrica DuBois
2 min read August 2022 — According to the latest report from Lodging Econometrics, the tourism industry is not only back, but prepared to prosper. The industry is also putting its cash into that continued growth, as Dallas-Fort Worth has landed the No. 1 spot in the United States Construction Trend Report for the largest pipeline of hotel construction projects for the fourth consecutive quarter.
Michael Koffler, general manager of the Hyatt Regency Dallas, says the demand in the area is partly due to the quick recovery from COVID. “North Texas is coming back much faster than a lot of the other major markets that we compete against, in part because we came out of the pandemic a little bit faster than some of the other major markets. Second, it’s just a great place for people to meet,” Koffler told Invest:.
Nationally, Dallas-Fort Worth leads the way with the largest pipeline of hotel construction with 173 projects that account for 20,707 rooms. Atlanta, Los Angeles, New York and Phoenix round out the Top 5 markets, representing 22% of the total number of rooms under construction in the country. According to Lodging Econometrics analysts, there was a surge of activity across many major markets in the first half of 2022.
The metroplex also ranked among the Top 3 markets with the most projects being built. New York City, with 78 projects and 13,063 rooms, took top billing in this category and Atlanta was second. Dallas-Fort Worth claimed third and Phoenix and Los Angeles completed the Top 5 at fourth and fifth, respectively.
Projects underway in Dallas include the The JW Marriott in the Dallas Arts District, the InterContinental Dallas in Cityplace District, and Plüsh Suites near the Galleria District. Across the region, the massive $550 million Loews Arlington Hotel and Convention Center project, which placed the final steel beam for completion last month, is set to open in 2024.
Fort Worth is also playing its part in boosting the recovery and the stability of the hotel industry in the region. According to CBRE’s valuation group, hotels in Fort Worth did not take as big of a hit and saw a faster pandemic recovery, in part because it is not as reliant on corporate and group travel as Dallas. The average daily rate (ADR) has already topped 2019 levels and revenue per average room (RevPAR) is expected to do the same by the end of the year.
Dallas is also betting on the construction of an expanded convention center to keep visitors coming into the region to fill up the new hotel rooms. Scheduled to begin construction in 2024, the 2.5-million-square-foot expanded convention center will feature exhibit space as well as the ballroom space and breakout space that the city currently does not have. The new facility is also expected to double annual event attendance and the associated revenue for Dallas.
The Convention Center District connects Downtown Dallas with neighboring areas, including Cedars, and is designed to create a walkable, holistic experience. A developer has yet to be named for the project, which will include restaurants, retail, lodging and entertainment for visitors and locals.
“I am very bullish for Visit Dallas, and Dallas in general, after an ugly two years,” Craig Davis, president and CEO of Visit Dallas, told Invest:. “People are ready to travel and they want to travel. This is the perfect place for them to set their sights. It has great diversity, food and experiences you can’t get elsewhere, so we are well placed for success.”
