Higher Interest Rates Could Delay New Hotel Projects In Dallas

With high interest rates, construction loan costs are increasing, which could cause delays or postponements of hotel development projects throughout the Dallas market. In September, the number of rooms under construction was 3,965, slightly lower than the highs experienced between 2017 and 2020, which averaged approximately 5,000 rooms. New rooms under construction have been on a downward trajectory since January, as over 6,000 rooms sit in the final planning stages.