The Dallas–Fort Worth (DFW) metro remains one of the nation’s leading metropolitan economies, driven by sustained corporate investment and a diversified employment base. Centrally located with two major airports, DFW International and Dallas Love Field, the region is a premier hub for both business and leisure travel, supported by rising visitor demand. Ongoing redevelopment, including the $2 billion expansion of the Kay Bailey Hutchison Convention Center, along with large-scale suburban projects such as the PGA of America headquarters and Universal Theme Park in Frisco, reinforce the market’s resilience and contribute to continued hospitality performance and regional growth.

 

Key Findings

• Dallas-Fort Worth’s hospitality market remains among the top three markets for rooms under construction nationally throughout 2025.
• Investor confidence held firm in Q3, with $52.5 million in hotel sales led by private buyers targeting select-service and suburban assets.
• Over 60% of Dallas’s active hotel development is heavily concentrated in Luxury and Upscale projects across Frisco, Las Colinas, and Uptown.

 

DFW Travel Accolades

2025 | Source: DFW Airport

• 3rd Busiest Airport
• 1.1% Passenger Increase YoY
• 43.5M Domestic Passengers
• 7.4M International Passengers

 

Upcoming Tourism Anchors

• FIFA World Cup
• Universal Kids Resort
• State Fair of Texas
• Annual NASCAR Cup

 

Population, Labor Force, & Income Growth

Source: CoStar Group, Inc.

 

Market Performance

Dallas–Fort Worth’s hospitality market steadied throughout Q3 2025 as new supply began to outpace modest demand shifts. Occupancy saw slight improvements at 63%, up 2.3% from the previous quarter, while ADR reached $124.87 and RevPAR settled at $78.55. Performance and travel trends indicate continued stability, with strong event activity and weekend travel offsetting softer midweek business demand as operators uphold rate integrity in a competitive supply environment.

 

Operators remain optimistic heading into Q4 as they prepare for an uptick in demand tied to the 2026 FIFA World Cup and the IndyCar Grand Prix of Arlington, supported by steady visitor volumes and economic stability.

 

Dallas Fort-Worth Occupancy, ADR, and RevPAR

Source: CoStar Group, Inc.

 

Construction

Development activity remains robust throughout Dallas-Fort Worth, with 4,600 rooms under construction across 38 projects. Investor and developer confidence holds strong emulate of an especially concentrated pipeline in Upscale and Upper Upscale projects to meet premium offering demands in key-growth corridors.

 

Uptown, Las Colinas, and Frisco anchor the pipeline in support of corporate campus expansion, up-and-coming entertainment district, and large-scale mixed-use projects catered towards business and leisure travels.

 

Notable projects include the MOXY Dallas Uptown and InterContinental Dallas, both slated for completion by 2026, adding luxury inventory to already high-performing corridors.

 

Pipeline By Scale

Source: CoStar Group, Inc.

 

Rooms Delivered

Source: CoStar Group, Inc.

 

Sales

Investment activity in Dallas–Fort Worth’s hospitality market reflected steady deal flow in Q3 2025 as investors navigated narrowing lending margins and ongoing economic uncertainty. Sales volume reached $292 million across 52 transactions, with pricing averaging $200,000 per key over the past 12 months. Due to Texas’s nondisclosure status, actual figures are likely higher, highlighted by notable trades of well-located, full-service assets such as the Fairmont Dallas, Westin Dallas Downtown, and La Quinta Inn & Suites Grand Prairie. CMBS exposure remains elevated, with 68 loans outstanding and several properties on watch lists or in special servicing. While inflation and financing costs continue to constrain deal velocity, private investors dominated acquisitions, complemented by selective institutional participation in high-quality assets.

 

DFW Sales Volume

Source: CoStar Group, Inc.

By the Numbers

Source: CoStar Group, Inc.

• Sales Volume: $52.5M
• Price Per Room: $162,044
• Cap Rate: 9.5%
• ADR: $124.87
• RevPAR: $78.55
• Under Construction: 4.6K rooms
• Delivered: 2.6K rooms
• Occupancy: 63%