Dallas-Fort Worth Hospitality Market Report

Major project brightens demand outlook downtown. The Kay Bailey Hutchison Convention Center is undergoing a $3.7 billion renovation. Upon completion, this will increase the property’s meeting space to 2.5 million square feet, including the addition of many smaller rooms to attract group activities. While the timeline for the project to finalize is scheduled for 2028 at the earliest, the positive impacts are already evident. In July, it was reported that more than 40 conventions had been booked at the new convention center. This future tailwind comes as hotel performance in the area is on an upward trajectory amid a broad return of business travel. The Dallas CBD-Market Center submarket had the second-strongest average RevPAR growth in the Metroplex during the 12-month period ended in June 2024. Meanwhile, relatively soft fundamentals after the pandemic reduced construction activity, with local hotel openings in 2024 slated to be the second smallest in a decade as a result.