Hot Spots: The Rise of Dallas and Atlanta in the Hotel Industry

In the US southern states, the hotel industry is booming. Dallas and Atlanta are experiencing the most momentum, with growth set to continue into the future. With large pipelines and a constant flow of projects in active construction, the two cities are undergoing rapid expansion influenced by an increase in cultural relevance. American citizens are increasingly relocating to both locations due to a lower cost of living, and many are also moving their businesses, resulting in increased business travel. Tourism is also a focus for both cities, and the result is a huge increase in the demand for hotels. Read on to understand the reasons for this hotel boom in more detail, and where development in these cities are headed in the future. 

Everything is bigger in Dallas… 

Among the top cities in the US – and, indeed, the world – for hotel development, Dallas is leading the charge. With 204 projects in the pipeline totaling 23,669 rooms, the Texan city is quickly growing its number of keys, adding numerous hotels of considerable size. Thirty hotels in the pipeline are in active construction, with a further 34 hotels planned for 2026. Uptown, Victory Park, and Turtle Creek are particular areas of interest for development, in addition to the busy greater Dallas-Fort Worth area. 

Ritz-Carlton can trace its presence in the city back to 2007 with the opening of the Ritz-Carlton Dallas. The hotel is still one of the leading properties in the city and the first Forbes Travel Guide Five-Star Hotel in Texas. The 218-key building is extremely spacious, featuring a 12,000 square foot spa, and 19,000 square feet of function space, complete with the largest ballroom in the Uptown area. The Marriott-owned brand has added to its strong presence in the city with its Las Colinas resort, opening in 2024. The 267-room JW Marriott Dallas Arts District Hotel is another notable property in the area from the ‘big six’ member, while the Four Seasons Turtle Creek is set to open in 2025, with 240 rooms spanning 35 floors. 

…More affordable too

There are many reasons why the hotel industry is experiencing such growth in Dallas. It is one of the most affordable US cities to live in, thanks to lower taxes and a competitive rental market. Businesses have relocated as a result, and hotel demand has risen. Greg Dickhens, managing partner at Trinity Investments, states: “We’ve seen an influx of residents and businesses from other states, like California, relocate to Dallas because of its favorable business climate and lower taxes. As such, there has been a greater demand for business and group travel and this audience is looking for more bespoke and luxury experiences.” The lower cost of hotel rooms in Dallas is also a factor, bringing in tourists from other states. The Ritz-Carlton Dallas, for example, starts at $349 for a double room, compared to the same room in other Ritz-Carlton hotels such as Boston ($825) or New York ($795).

The future of the hotel industry in Dallas looks very bright, with its large pipeline set to remain steady. The city itself has a ten year master plan in place to increase growth, according to Visit Dallas CEO Craig Davis. With tourism and business likely to be a key part of this plan, more hotels will be needed over the coming years to help facilitate this development. The city also expects to gain $2.1 billion from hosting games during the 2026 Fifa World Cup, an injection of funds that could help support this plan. The tournament will also benefit the existing hotels that will host a massive influx of football fans. 

Suite tea in Atlanta

With 168 projects totalling 19,431 rooms in the pipeline, Atlanta, Georgia is undergoing the second largest hotel expansion in the US. Twenty seven projects are currently under construction, close in number to that of Dallas. The pipeline numbers have rapidly expanded in a short space of time, rising from 6,800 rooms as of Q1 2023. The city is also benefitting from a large number of renovations, with 28 such projects (3,595 rooms) in development, as of Q4 2024. 

2024 has seen some notable openings in the unofficial capital of the south. Hilton has made a huge impact on the Atlanta skyline with the opening of the $150 million Signia by Hilton, Atlanta’s largest new hotel in four decades. Consisting of 976 keys and 42 stories, it is the tallest building on the west side of the city. While many hotel companies focus on the downtown area, the 196-room Forth Hotel Atlanta also opened in 2024, bringing a luxury option to the Historic Fourth Ward Park. Its interiors reflect its location, offering guests vintage touches such as beamed ceilings and glass block windows. 

Smart strategies

Similarly to Dallas, Atlanta has seen an influx of residents due to a lower cost of living. Smart investment in affordable housing and building strategies are also drawing other business and culture as a result. Multiple Fortune 500 companies such as Coca-Cola, Delta Air Lines, and Home Depot have headquarters in Atlanta, further increasing the need for hotels, and a desire for more premium stays.

In the coming years, the drive for new hotels in Atlanta will surely continue. Huge openings such as Signia by Hilton represent a new benchmark for the city, while the tourism boost gained from Atlanta hosting matches during the 2026 Fifa World Cup will generate an estimated $415 million for the local economy, further boosting the likelihood of an even larger future development pipeline. It is also worth noting that Signia by Hilton overlooks the site of Atlanta’s World Cup matches, Mercedes Benz Stadium, a choice that may work out very well for the hotel giant. 

The growing southern states

The southern states are big business for the hotel industry at present. Dallas and Atlanta are major cities set to continue this trend following strong pipeline figures and momentum gained from prominent recent openings. Top hotel chains such as Marriott and Hilton have increased their presence, and less busy districts outside of the main downtown areas are filling with new hotels. Aside from the main drivers of change influencing the hotel boom that have been previously explored, investment in infrastructure is ensuring both cities maintain the increased attention they have received in recent years. 

For Dallas, various expansions provide evidence that this hotel boom will continue, in order to accommodate the resulting increase in visitors. Dallas Fort Worth International Airport is undergoing a $9 billion renovation, in addition to the building of a new $1.6 billion terminal, allowing for a greater flow of visitors. A new $2 billion convention centre measuring 2.5 million square feet is also currently being constructed, expected to double annual attendance and associated revenue for Dallas. 

Atlanta is undergoing a similar rate of infrastructure construction, unsurprising for the city with the world’s busiest airport. In addition to the development of new housing, the city has a vast number of projects under construction, including data centres, supporting the tech companies that continue to relocate there. There is also significant investment in the downtown area of Atlanta, with a reimagined Centennial Yards area providing an attractive urban hub for tourists. As the opportunities for visitors grow thanks to these wider developments, so too does the demand for hotel rooms. It is therefore an exciting time for these key southern cities, as the hotel industry continues to grow in Dallas and Atlanta.