Latin America Hotel Pipeline Expands in 2025

Hotel Construction Pipeline Grows by 13% Year-on-Year

According to Lodging Econometrics’ Q4 2025 Latin America Construction Pipeline Trend Report, the region’s total hotel construction pipeline reached 774 projects comprising 117,260 rooms at year-end 2025. This represents a 13% increase in projects and a 7% rise in rooms compared to the previous year.

The expansion highlights sustained investor confidence in Latin America’s hospitality real estate sector, supported by tourism recovery, business travel demand and continued brand expansion by international hotel operators.

Construction Activity and Near-Term Starts

At the close of Q4 2025, 309 projects totaling 51,676 rooms were under construction, reflecting growth of 14% by projects and 7% by rooms year-over-year. An additional 207 projects with 30,487 rooms are scheduled to begin construction within the next 12 months, marking increases of 16% in projects and 5% in rooms.

Projects in early planning reached 258 developments comprising 35,097 rooms, up 9% by projects and 7% by rooms compared to the prior year. During Q4 alone, 40 hotels with 5,746 rooms broke ground, a 25% increase in projects year-over-year.

Segment Performance: Midscale Leads Growth

The luxury segment accounts for 140 projects totaling 25,812 rooms, up 4% in projects year-over-year. Upscale projects stand at 139 developments with 20,429 rooms, increasing by 3% in room count.

The midscale segment recorded the strongest growth, reaching 144 projects with 17,155 rooms, up 21% by projects and 25% by rooms year-over-year. Meanwhile, the upper upscale chain scale achieved record-high levels in Q4 with 134 projects totaling 22,628 rooms.

Country Leaders: Mexico, Brazil and Dominican Republic

Mexico leads the region with 257 projects comprising 38,669 rooms, reflecting growth of 4% in projects and 1% in rooms. Brazil follows with 133 projects totaling 17,719 rooms, posting robust gains of 25% in projects and 20% in rooms.

The Dominican Republic stands at 84 projects with 18,061 rooms, up 27% in projects and 7% in rooms year-over-year. Together, these three countries represent 61% of the total projects and 63% of all rooms in Latin America’s hotel construction pipeline.

Major Cities and Opening Forecast

Mexico City reached a record-high 30 projects totaling 3,367 rooms, increasing 25% in projects and 15% in rooms year-over-year. Lima, Peru follows with 16 projects and 2,206 rooms, while Georgetown, Guyana also reports 16 projects totaling 2,142 rooms, posting one of the region’s fastest growth rates.

By the end of 2025, 71 new hotels with 12,160 rooms opened across Latin America. Lodging Econometrics forecasts 125 new hotels with 20,467 rooms to open in 2026, followed by 136 new hotels with 17,783 rooms in 2027.

Expert Conclusion from International Investment

As experts at International Investment report, the steady expansion of Latin America’s hotel construction pipeline reflects long-term confidence in the region’s tourism and hospitality sectors. If current development momentum and capital inflows continue, the region could consolidate its position as one of the most dynamic hospitality investment markets among emerging economies.