Latin America’s hospitality sector is on the rise, according to Lodging Econometrics’ Q2 2025 Hotel Construction Pipeline Trend Report. The region saw double-digit, year-over-year (YOY) growth in hotel development, with a robust pipeline set to carry momentum through 2027.
If you enjoy bullet points as much as hotel development stats, then this is the place to be—there are a lot to come!
Under construction and in the pipeline
As of the end of Q2 2025, Latin America’s hotel construction pipeline includes 748 projects totaling 116,648 rooms—a 22% YOY increase in projects and a 20% rise in rooms.
Of these:
- 303 projects (51,184 rooms) are currently under construction
- 197 projects (30,943 rooms) are expected to break ground in the next 12 months
- 248 projects (34,521 rooms) are in early planning stages
Construction is picking up the pace:
- 46 projects (7,275 rooms) began construction in Q2 2025—a 15% increase over the previous quarter
- Renovation and brand conversion activity remains steady, with 159 projects (27,513 rooms)
- New project announcements grew 6% YOY, reaching 66 projects and 9,067 rooms
Luxury, upscale, and midscale see strong growth
The region’s development is focused across a mix of chain scales, showing interest from both luxury investors and value-driven operators:
- Luxury: 142 projects | 27,428 rooms (a record high)
- Upscale: 140 projects | 20,482 rooms
- Midscale: 137 projects | 16,924 rooms
These segments reflect developer interest in attracting a wide spectrum of guests, from high-end travelers to cost-conscious explorers.
Country leaders and city hotspots
Mexico remains the undisputed leader, setting a new record with 263 projects (40,428 rooms). Following behind are:
- Brazil: 121 projects | 16,109 rooms
- Dominican Republic: 85 projects | 18,458 rooms (an all-time high)
Together, these three countries account for 63% of all projects and 64% of all rooms in the regional pipeline.
At the city level:
- Mexico City: 29 projects | 3,408 rooms
- Riviera Maya: 17 projects | 2,204 rooms
- Georgetown: 14 projects | 1,824 rooms
These urban centers continue to serve as focal points for hospitality growth across the region.
Growth set to continue through 2027
In the first half of 2025, Latin America saw the opening of 25 new hotels with 4,474 rooms.
Looking ahead:
- H2 2025: 64 hotels expected (11,050 rooms)
- Full-year 2025 forecast: 89 hotel openings (15,524 rooms)
- 2026 projection: 131 hotels (19,987 rooms)
- 2027 forecast: 140 hotels (19,483 rooms)
With strong construction starts, rising upscale and luxury development, and country-level investment in key tourism markets, Latin America’s hotel industry is well-positioned for continued expansion.
