In the last few years, many in-person meetings, events and conventions worldwide were canceled or postponed. However, in 2024, meeting, professional event and convention spending is projected to increase alongside in-person demand, according to a recent survey from American Express Global Business Travel.
Increased in-person demand certainly impacts the hospitality industry, especially in cities with the largest, most visited convention centers in the U.S. Top convention center cities are preparing for increased demand by building new hotels and refurbishing or repositioning existing ones. To accommodate demand, cities like Atlanta, Chicago, Dallas, Las Vegas, Los Angeles, Miami, New Orleans, New York City, Orlando and San Diego have an abundance of new hotel construction, renovation and brand conversion activity underway.
With an astounding 60% of its new hotel construction projects under construction, the most of any convention center market, New York City leads with 46 projects under construction. It also has 22 open and operating hotels that either are or will be undergoing a renovation or brand conversion. Through Q3 2023, New York also has the most new construction starts of any market in the U.S.
Atlanta, a popular destination for conventions and exhibitions in the southeast, leads all convention markets with 40 hotels in the renovation or conversion pipeline. Atlanta also has another 26 new construction projects/4,354 rooms under construction.
McCormick Place in Chicago, the largest convention center in North America, hosts many varied events. Not surprisingly, Chicago has a combined 93 new construction, renovation and brand conversion projects in its pipeline, and 20% of these projects/hotels are located within 10 miles of McCormick Place.
With 224 projects/28,070 rooms, the Dallas market leads with the most new construction, renovation and brand conversion projects combined in all project stages. While only 25 new projects accounting for 3,178 rooms are currently under construction, there are a whopping 164 projects/18,662 rooms either scheduled to start construction in the next 12 month or in early planning in Dallas. Another 35 hotels/6,230 rooms are in the renovation and conversion pipeline.
As one of the world’s largest convention centers, Las Vegas has 38 new hotel construction pipeline projects in various stages. Nine are currently under construction, another 13 are scheduled to start in the next 12 months and 16 projects are in early planning. Additionally, 28 hotels/47,126 rooms are currently in the renovation and brand conversion pipeline.
Los Angeles, which hosts the Americas Lodging Investment Summit (ALIS) each year, has 134 projects in its hotel development pipeline in all the various stages. Eleven new hotel projects are under construction, 46 projects are scheduled to start in the next 12 months and 53 projects are in the early planning stage. It also has 24 renovation and brand conversion projects.
Having undergone a $640-million renovation, the Miami Beach Convention Center welcomes event planners, exhibitors and attendees to the area. To accommodate demand, 56 or 68% of Miami’s 83 total development projects are located within five miles of the convention center.
New Orleans, known for hosting numerous events, including Mardi Gras, boasts 38 new construction, renovation and conversion projects in all project stages. Forty percent of these hotels are renovations or conversions.
Orlando, one of the U.S.’ busiest convention centers, has 19 new projects with 4,332 rooms under construction and another 15 renovation and brand conversion projects.
The San Diego Convention Center, located along the waterfront, is a hub for events on the West Coast. As a popular destination, this city has seen ongoing hotel development to accommodate both business and leisure travelers. San Diego’s total development pipeline stands at 68 projects/13,271 rooms. While only four new hotel projects have begun construction, the back-end stages of the pipeline are loaded with projects.
While this article spotlights larger convention center markets in the U.S., LE is anticipating similar activity in other markets that attract events and conventions.
For a comprehensive understanding of hotel development activity, which includes new construction projects, announced renovations, and brand conversions, in the U.S. or any other region, country or market worldwide, contact Lodging Econometrics at firstname.lastname@example.org or 603.431.8740, ext. 0025. We can supply you with hotel development intelligence by market, city, franchise company and brand, chain scale and more.