Latin America Hotel Boom Sees Massive Growth and New Luxury Developments Across the Region

Hotel News: Hotel Construction in Latin America Surges with Double Digit Growth

The hotel industry across Latin America is witnessing a dramatic expansion in 2025, as new data from Lodging Econometrics (LE) reveals an 18% year-over-year (YOY) spike in hotel construction projects. As of the end of Q1 2025, the region boasts a total pipeline of 715 hotel projects encompassing 112,598 rooms. This Hotel News report confirms that Latin America’s hospitality landscape is entering a dynamic phase of growth, driven by increasing demand, investor confidence, and a resurgence in post-pandemic travel.

The data indicates a surge across all phases of development. Hotels currently under construction amount to 287 projects with 49,570 rooms—marking a 15% YOY growth in project count and a 5% rise in rooms. Another 190 projects (29,084 rooms) are scheduled to break ground within the next 12 months, while early planning activity has jumped significantly, with 238 projects (33,944 rooms), reflecting a 43% increase in project numbers and a 37% rise in room count from the previous year.

Upscale and Luxury Segments Lead the Charge

The strongest momentum is concentrated within the upscale, luxury, and midscale hotel segments. The upscale category leads with 139 projects and 20,122 rooms. Notably, the luxury segment has reached an all-time high, registering 135 projects and 26,440 rooms. This surge reflects growing traveler demand for premium accommodations and a favorable investment environment for developers.

The midscale segment remains robust as well, with 128 projects (15,772 rooms) underway, while the upper upscale category also hit record levels, closing Q1 with 119 projects and 22,567 rooms. This distribution suggests that Latin America is not only targeting high-end travelers but also preparing to welcome a wider demographic of mid-tier visitors.

Mexico Dominican Republic and Brazil Dominate the Pipeline

Geographically, three countries are driving the bulk of new developments. Mexico leads with 254 projects totaling 39,163 rooms, setting a new national record. Brazil follows with 112 projects and 15,134 rooms, while the Dominican Republic is emerging as a significant player with 78 projects and 18,331 rooms. These three nations collectively account for 62% of all hotel projects and 65% of total rooms under development across Latin America.

Key urban hotspots with the most concentrated construction activity include Mexico City (26 projects/3,068 rooms), the resort hub of Riviera Maya (16 projects/1,846 rooms), and Lima, Peru (14 projects/2,192 rooms). Santo Domingo in the Dominican Republic and Georgetown in Guyana are also showing strong activity, with 13 and 12 projects respectively.

Conversions Renovations and Brand Expansions on the Rise

Beyond new builds, the region is also seeing an uptick in brand conversions and property renovations. These projects now total 137, adding 26,015 rooms to the regional supply, reinforcing the ongoing transformation of Latin America’s hospitality infrastructure. New construction starts in Q1 included 36 projects (5,353 rooms), while new project announcements (NPAs) rose with 58 new plans adding 9,364 rooms to the future development list.

The first quarter of 2025 alone saw the opening of 8 new hotels totaling 1,319 rooms. Lodging Econometrics forecasts a busy remainder of the year, with an additional 89 hotels and 14,761 rooms expected to open. By year’s end, the region is projected to welcome 97 new hotels comprising 16,080 rooms. Looking even further, 2026 is poised to break records again, with 133 hotels and 20,345 rooms forecast to open.

An Encouraging Outlook for Latin American Hospitality

As global tourism recovers and international investors refocus on high-potential destinations, Latin America has clearly emerged as a hotbed for hotel development. The exceptional rise in both luxury and mid-tier hotel pipelines signals confidence in the region’s long-term economic and tourism prospects. Countries like Mexico and the Dominican Republic are setting benchmarks for growth, while rising interest in secondary cities suggests that the hotel boom is spreading beyond the usual tourism strongholds.

With continued growth across all development stages and segments, stakeholders in the hospitality sector—from hotel chains to developers and service providers—should keep a close eye on Latin America as one of the most promising frontiers for expansion.

For more Hotel Construction Pipeline Trend Reports, check out: https://lodgingeconometrics.com/purchase-reports/region-construction-pipeline-trend-reports/

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