Latin America’s Hotel Construction Pipeline Expands by 13% in 2025

Latin America’s hotel construction pipeline saw a 13% year-over-year increase in projects at the end of 2025, with significant growth in Mexico, Brazil, and the Dominican Republic, and continued expansion expected through 2027.

The Latin America Construction Pipeline Trend Report for Q4 2025, published by Lodging Econometrics, indicates continued growth in the region’s hotel construction sector. As of the end of 2025, the total construction pipeline reached 774 projects, representing 117,260 rooms. This marks a 13% increase in project count and a 7% increase in room count compared to the previous year.

Project Stages and Growth

Projects under construction totaled 309, accounting for 51,676 rooms, which reflects a 14% increase in projects and a 7% increase in rooms year-over-year. Projects scheduled to begin construction within the next 12 months reached 207, with 30,487 rooms—up 16% by projects and 5% by rooms. Early planning projects numbered 258, totaling 35,097 rooms, up 9% by projects and 7% by rooms compared to the previous year.

In the fourth quarter alone, 40 hotels began construction, representing 5,746 rooms. This is a 25% increase in the number of projects compared to the same period last year.

Market Segments

The luxury segment includes 140 projects with 25,812 rooms, reflecting a 4% increase in projects. The upscale segment has 139 projects and 20,429 rooms, a 3% increase in room count. The midscale segment experienced the highest growth, with 144 projects and 17,155 rooms, up 21% and 25% year-over-year, respectively. The upper-upscale chain segment reached a record high in the fourth quarter, reporting 134 projects and 22,628 rooms.

Country and City Leaders

Mexico leads the region with 257 projects and 38,669 rooms, up 4% and 1% year over year, respectively. Brazil follows with 133 projects and 17,719 rooms, reflecting a 25% increase in projects and a 20% increase in rooms. The Dominican Republic ranks third with 84 projects and 18,061 rooms, up 27% in projects and 7% in rooms. These three countries together account for 61% of the projects and 63% of the rooms in the regional pipeline.

Among cities, Mexico City has the largest pipeline, reaching a record 30 projects and 3,367 rooms—up 25% in projects and 15% in rooms compared to the previous year. Lima, Peru, has 16 projects and 2,206 rooms, up 14% and 1%, respectively. Georgetown, Guyana, also has 16 projects, totaling 2,142 rooms, with increases of 33% in projects and 29% in rooms.

Recent Openings and Future Outlook

By the end of 2025, 71 new hotels with 12,160 rooms opened in Latin America. Projections for the coming years indicate continued expansion. In 2026, 125 new hotels with 20,467 rooms are expected to open. In 2027, forecasts show 136 new hotels with 17,783 rooms scheduled to open.