Latin America’s hotel construction pipeline has reached unprecedented levels, with a 17% year-over-year increase in projects and an 11% rise in rooms, according to Lodging Econometrics. The region is experiencing significant growth across all stages of construction, particularly in luxury and upper upscale segments, with Mexico, Brazil, and the Dominican Republic leading the charge.
Overview of the Construction Boom
The third quarter of 2025 marked a significant milestone for Latin America’s hospitality industry, as detailed in Lodging Econometrics’ Q3 2025 Latin America Construction Pipeline Trend Report. The report reveals that the hotel construction pipeline in the region has reached 751 projects and 116,480 rooms, reflecting a 17% year-over-year (YOY) increase in the number of projects and an 11% rise in room count.
Pipeline Stages and Growth
A closer examination of the data shows a robust expansion across various stages of the construction pipeline. By the end of Q3 2025, there were 308 projects with 51,984 rooms under construction, marking a 14% YOY increase in projects and a 10% rise in rooms. Projects scheduled to begin construction within the next 12 months have grown to 211 projects and 32,424 rooms, representing a 15% increase in projects and a 7% rise in rooms YOY. The early planning stage has also seen substantial growth, with a 22% YOY increase in projects, totaling 232, and an 18% rise in room count, reaching 32,072 rooms.
Renovations and Brand Conversions
Q3 2025 also witnessed significant activity in hotel renovations and brand conversions. The region saw a combined total of 173 projects and 29,200 rooms, reflecting a 15% increase in projects and a 5% rise in rooms YOY. This trend underscores the ongoing efforts to modernize and rebrand existing properties to meet the evolving demands of travelers.
Chain Scale Insights
Lodging Econometrics is highlighting record highs in the luxury and upper-upscale segments. The luxury chain scale closed the quarter with 143 projects and 27,387 rooms, while the upper upscale segment reached 124 projects and 22,420 rooms. The upscale segment also saw significant activity, with 144 projects and 20,904 rooms.
Geographical Distribution
Geographically, Mexico stands out with an all-time high of 264 projects and 40,412 rooms, accounting for 35% of both the total number of projects and rooms. Brazil follows with 123 projects and 16,272 rooms, showing a 19% YOY increase in project count. The Dominican Republic is also on a strong growth trajectory, with 81 projects and 17,351 rooms, representing a 37% increase in project count and a 20% rise in room count YOY. Together, these three countries account for 62% of all projects and 64% of rooms in the region’s construction pipeline.
City-Specific Developments
Among cities, Mexico City leads with 28 projects and 3,273 rooms, followed by Lima with 16 projects and 2,206 rooms, and Riviera Maya with 16 projects and 2,088 rooms.
Forecast and Future Outlook
The first three quarters of 2025 saw 45 new hotel openings, adding 7,869 rooms to the market. LE forecasts an additional 35 new hotels with 5,178 rooms to open in Q4 2025, bringing the total for the year to 80 new hotels and 13,047 rooms. Looking ahead, the forecast for 2026 includes 121 new hotels and 20,348 rooms, with a further increase projected for 2027, with 134 new hotels and 17,072 rooms.
