LE’s Q2 2025 report shows Latin America in expansion mode, with 748 projects encompassing 116,648 rooms now in the construction pipeline, representing year-over-year growth of 22% in project count and 20% in room inventory. This progression indicates that developers are planning more projects across the region, reflecting steady confidence in diverse markets.
More than 300 projects with over 51,000 rooms are actively under construction, showing 20% YOY growth. At the same time, the early planning stage has grown by 44% with additional projects compared to last year, suggesting sustained interest in the market.
“The Latin America region continues to demonstrate resilience and growth potential,” said Bruce Ford, senior vice president and director of global business development at Lodging Econometrics. “What we’re seeing is steady expansion driven by improving economic fundamentals, nearshoring trends, and Latin America’s increasing prominence as a destination for both leisure and business travelers.”
The luxury chain scale continues to perform well, with 142 projects and 27,428 rooms in development, both record highs. Leading the luxury pipeline is the Moon Palace Punta Cana in the Dominican Republic, currently under construction and slated to add 2,149 rooms to the country’s inventory upon opening. This activity at the premium end reflects Latin America’s continued appeal to affluent travelers and the region’s development as a luxury destination beyond traditional resort areas, indicating that institutional capital and international hotel brands maintain interest in the region.
The upscale chain scale comprises 140 projects, with the Iberostar Beachfront Resort Los Cabos in Mexico leading this chain scale at 1,110 rooms upon completion. The midscale category comprises of 137 projects, resulting in a reasonable distribution across price points that suggests developers are targeting multiple traveler segments.
Mexico leads the regional pipeline with 263 projects representing 40,428 rooms, while Brazil follows with 121 projects and the Dominican Republic is third with 85 projects. These three countries collectively represent nearly two-thirds of all pipeline activity.
Construction activity increased in Q2, with 46 projects totaling 7,275 rooms breaking ground, a 15% quarterly rise that suggests developers are moving forward with plans despite broader economic uncertainties. The renovation and conversion segment also exhibits substantial activity, with 159 projects undergoing transformations. Two of the largest projects undergoing renovation currently are the Bahla Principe Grand Punta Cana in the Dominican Republic and the Princess Mundo Imperial in Mexico.
LE forecasts call for 89 total openings and 15,524 rooms by the end of 2025, with notable projects including the 1,100-key upper upscale Hard Rock Hotel in Montego Bay, Jamaica, and the 1,043-key Senator Riviera Cancun in Mexico among the largest slated to open. The forecast anticipates continued growth, with 131 hotels expected in 2026, including the Moon Palace Punta Cana, scheduled to open in March, followed by 140 hotels in 2027.
By Rob Schneider
