Latin America Hotel Construction Pipeline Rises 6% Year-Over-Year in Q1 2026 :: Hospitality Trends

The latest report from Lodging Econometrics (LE) indicates that Latin America’s hotel construction pipeline reached 755 projects, totaling 113,663 rooms at the end of the first quarter of 2026. This represents a 6% increase in the number of projects and a 1% increase in the number of rooms compared to the same period last year. The data highlights a steady rise in hotel development across the region, with both new construction and renovation projects contributing to the overall growth.

Stages of Development and Chain Scale Trends

At the close of Q1 2026, there were 300 projects with 50,139 rooms under construction, reflecting a 5% year-over-year increase in project count and a 1% increase in rooms. Projects scheduled to start within the next 12 months included 189 projects and 28,347 rooms. Early planning activity was particularly strong, with 266 projects and 35,177 rooms, marking a 12% increase in projects and a 4% increase in rooms compared to the previous year.

In terms of chain scales, the luxury segment accounted for 142 projects and 26,590 rooms. The upper midscale segment saw significant growth, with 139 projects and 18,660 rooms, up 28% in project count and 33% in rooms year over year. The upscale segment included 135 projects and 19,662 rooms. These categories account for the majority of projects in the current pipeline.

Country and City Breakdown

Mexico led the region with 247 projects and 36,646 rooms, making up 33% of the total projects in the Latin American pipeline. Brazil followed with 132 projects and 18,172 rooms, reflecting an 18% increase in projects and a 20% increase in rooms over the previous year. The Dominican Republic was third, with 84 projects and 18,014 rooms, up 8% year-over-year in project count. Combined, these three countries accounted for 61% of the projects and 64% of the rooms in the regional pipeline.

Among cities, Mexico City had the largest number of projects, with 29 projects and 3,290 rooms. Lima, Peru recorded 18 projects and 2,402 rooms, while Georgetown, Guyana had 15 projects and 2,051 rooms. Each of these cities experienced notable year-over-year increases in both project and room counts.

Renovation, Conversion, and Openings

Renovation and conversion projects remained a significant part of the hotel development landscape in Latin America. At the end of Q1 2026, there were 150 renovation and conversion projects, totaling 25,788 rooms, representing a 9% increase in project count compared to the previous year.

During the first quarter of 2026, 14 new hotels with 2,153 rooms opened across the region. LE forecasts an additional 90 hotels with 15,781 rooms to open by the end of the year, bringing the total number of new hotels expected to open in 2026 to 104, with 17,934 rooms. Looking ahead to 2027, LE projects 115 new hotels with 15,661 rooms will open in Latin America.

Outlook

The data from Lodging Econometrics suggests continued growth in hotel construction and renovation activity in Latin America. Early planning and strong performance in key countries and cities are expected to drive further development through 2027.