Texas Leading the Way in 2026 Hotel Construction Boom — Extended-Stay Projects Leading trend
The U.S. hotel construction pipeline continues to surge, and all signs point to a strong 2026 for new hotel openings—particularly in the extended-stay segment. According to the U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics, Texas is at the forefront of the projected growth, and the Dallas area is projected to outpace every other market in the country when it comes to hotel development in the coming years.
Dallas is forecast to open 34 new hotels totaling 3,644 rooms by the end of 2026, making it the top U.S. market for new hotel openings, according to Lodging Economics. That momentum builds on a existing 2024 pipeline of 189 hotel projects in various stages of development—just shy of its all-time high.
Extended-Stay Hotels Driving Development
A key driver is booming demand for extended-stay hotel properties, which have seen a surge in popularity thanks to shifting travel habits, remote work flexibility, and long-term corporate lodging needs. Brands like WoodSpring Suites, stayAPT Suites, and ESA Premier Suites are expanding aggressively to meet this demand, according to the report.
Extended-stay hotels are attractive for both developers and travelers. For guests, they offer a more residential-style experience with kitchenettes, workspaces, and flexible living areas. For developers and operators, extended-stay properties often mean higher occupancy rates, lower operating costs, and a more stable guest base—especially in suburban and secondary markets.
Dallas: A Hub for Extended-Stay Construction
Dallas is a natural fit for this kind of growth. Its diverse economy, business-friendly environment, and rapidly expanding metro population create strong fundamentals for sustained hotel demand.
Pilot Construction, with its expertise in ground-up extended-stay construction, sees this as a major opportunity. The region’s appetite for development—especially in long-term stay lodging—continues to fuel demand for contractors who understand the complexities and requirements of building these specialized properties.
Looking Ahead
By 2026, other major markets like the Inland Empire (CA), Phoenix, Atlanta, and Austin are also expected to see significant hotel openings. But Dallas is projected to set the pace—not just in total number of projects, but in its role as a leader in extended-stay development.