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Market Report

Dallas-Fort Worth Hospitality Market Report

2023 Investment Forecast

Second-Largest Hotel Pipeline Nationwide Converges
With Economic Pressures to Constrain Occupancy

Fort Worth shines, but new development could hamper momentum. Entering 2023, nine of 14 Metroplex submarkets had returned to an average yearlong occupancy rate exceeding 65 percent, including four of the five areas that comprise Fort Worth-Arlington. Adjacent to the DFW International Airport — which hosted the second-largest passenger volume worldwide during 2022 — higher occupancy and ADR in the Bedford-Grapevine submarket allowed RevPAR growth here to exceed 30 percent last year. The Fort Worth CBD-I-280 West submarket similarly notched a 30-plus percent annual RevPAR gain during 2022, buoyed by strength in the University and medical center areas. New supply could become a serious hurdle for these and other outperforming pockets of the Metroplex, however. Dallas-Fort Worth’s construction pipeline is the second largest in the country, with about 25 percent of scheduled deliveries for 2023 headed to these two submarkets. Denton-Lewisville-McKinney, meanwhile, will have the greatest share of new keys during 2023, warranted by its claim on the market’s second-highest average occupancy rate last year. As a whole, Dallas-Fort Worth occupancy will slide down in 2023 as elevated development coincides with an economic slowdown and reduced travel sentiment. 
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