Latin America’s Hotel Construction Pipeline Expanses: A Year-over year Analysis
According to the Latin America Construction Pipeline Trend Report published by Lodging Econometrics The Latin American hotel construction sector (LE) reported an 18% increase in projects, and an 11% increase in rooms from Q1 to Q1 2025.
Analysis of Growth
As of Q1 2025 the total pipeline for hotel construction in Latin America consists of 715 projects with 112,598 room. The 287 under-construction project/49,570 room count represents a 15% year-over-year increase in projects and a 5 % increase in rooms.
In the next 12 month, 190 projects/29.084 rooms are scheduled to be built, which represents an 1% increase in projects and rooms year-on-year. The number of projects in the early planning stage is 238/33,944 which represents a 43% rise by projects, and a 37% by rooms increase YOY.
Chain scales and countries leading the growth
Hotel construction projects were dominated by the upscale chain scale (139 projects/20.122 rooms), luxury chain scale (135 projects/26.440 rooms), and midscale chain scale (128 projects/15.772 rooms).
Mexico (254 project/39 163 rooms), Brazil (1112 projects/15 134 rooms), Dominican Republic (8 projects/18 331 rooms) are the countries with the most projects. These three countries represent 62% of projects and 65% total Latin America pipeline room.
Renovations in Key Cities
Mexico City has the most construction pipelines (26 projects/3 068 rooms), Riviera Maya in Mexico (16 projects/1 846 rooms) and Lima in Peru (14 projects/2 192 rooms).
The number of hotel renovations and brand conversions continues to grow, with 137 projects and 26 015 rooms. 8 new hotels in Latin America opened their doors with 1,319 room capacity during the first quarter of 2020.
Future Forecast
LE’s new hotel openings forecast is for the rest of the year. 89 hotels and 14,761 rooms are expected to open before the end of 2025, with 97 projects and 16,080 rooms total. LE analysts expect a rise in the number of new hotels opening in Latin America by 2026. 133 new properties with 20,345 rooms are expected to be opened.
