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You are at:Home » Latin America’s Hotel Construction Surges
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Latin America’s Hotel Construction Surges

1 August 20253 Mins Read

  • Andaz Mayakoba Resort Riviera Maya – Image Credit Hyatt   

Latin America’s hotel construction pipeline experiences significant growth, with a 22% increase in projects and a 20% rise in rooms year-over-year, indicating robust development through 2027.

The Latin American hotel construction industry is witnessing a notable surge, as evidenced by the Q2 2025 Latin America Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE). The report highlights a substantial year-over-year (YOY) growth in the region’s hotel development projects, with forecasts indicating continued expansion through 2027. 

Current Construction Pipeline

As of the second quarter of 2025, Latin America’s hotel construction pipeline stands at 748 projects, encompassing 116,648 rooms. This marks a 22% increase in projects and a 20% increase in rooms compared to the previous year. The growth is evident across various stages of development. Notably, there are 303 projects with 51,184 rooms currently under construction, reflecting a 20% YOY increase in projects and a 15% rise in rooms.

Projects scheduled to commence construction within the next 12 months amount to 197 projects with 30,943 rooms, showing a 5% YOY increase in both projects and rooms. Additionally, projects in the early planning stage have surged by 44% YOY, reaching 248 projects and 34,521 rooms, with a 45% YOY increase in rooms.

Chain Scale Segments

The report identifies key chain scale segments driving this growth. The luxury chain scale has reached record-high project and room totals, with 142 projects and 27,428 rooms. The upscale chain scale follows closely with 140 projects and 20,482 rooms, while the midscale chain scale accounts for 137 projects and 16,924 rooms. These segments highlight the diverse range of developments occurring across the region.

Construction Activity and Renovations

Construction activity in Latin America is on the rise, with 46 projects and 7,275 rooms commencing construction in Q2 2025. This represents a 15% increase in projects compared to the previous quarter. Renovation and conversion activities are also significant, with 159 projects and 27,513 rooms recorded at the end of Q2. New project announcements (NPAs) during this period increased by 6% YOY, closing the quarter with 66 projects and 9,067 rooms.

Country-Specific Insights

The report highlights several countries leading the hotel construction pipeline in Latin America. Mexico tops the list with a record 263 projects and 40,428 rooms. Brazil follows with 121 projects and 16,109 rooms, while the Dominican Republic achieves all-time highs with 85 projects and 18,458 rooms. Collectively, these three countries account for 63% of the projects and 64% of the rooms in the total pipeline.

City-Level Developments

At the city level, Mexico City boasts a record 29 projects, accounting for 3,408 rooms. Other notable cities include Riviera Maya with 17 projects and 2,204 rooms, and Georgetown with 14 projects and 1,824 rooms. These cities are pivotal in the region’s hotel construction landscape, reflecting the concentrated growth in urban centers.

Outlook

In the first half of 2025, Latin America saw the opening of 25 new hotels with 4,474 rooms. LE’s forecast for the remainder of the year anticipates an additional 64 new hotels with 11,050 rooms to open in Q3 and Q4, culminating in 89 new hotels with 15,524 rooms by year-end. Looking ahead, LE projects continued growth with 131 new hotels and 19,987 rooms expected to open in 2026. For the first time, LE has announced its 2027 forecast, projecting 140 new hotels with 19,483 rooms.

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