Dallas, Texas hotel market

What flat actually contains

Dallas reported $1.371B of room receipts in the trailing twelve months against $1.369B the year before, a rounding-error gain of 0.1%. Two filings sit inside the current-year window that should not be taken at face value. The Hyatt Regency Dallas filed $17.8M for December 2025, against $2.2M the December before and $2M to $5M in every other month. The Adolphus filed $24.5M for May 2026, against $2.4M to $2.9M in a typical month, on 407 rooms. Together they add roughly $38M of receipts that look like amended-filing lumps rather than rooms sold; net them out and the trailing year is down about 3%, not flat. The growth rate at the top of this page does exactly that: flagged months at six properties, about $48M in all, are replaced with typical ones, and the rate reads minus 3.4%.

The same caution applies to the monthly chart: May 2026 prints 17% above the prior May, and that gain is the Adolphus lump. The cleaner reading is the calendar years, which have barely moved for three years running: $1.35B in 2023, $1.38B in 2024, $1.37B in 2025. The soft patch was the summer of 2025, when the third quarter ran 7.4% below the year before.

Soft boxes, strong suites

The flat topline is a rotation. Every one of the market's big group boxes lost ground in the trailing year: the city-owned, 1,001-room Omni Dallas, the convention headquarters hotel, is down 13.1%; the 1,840-room Sheraton Dallas is down 11.0%; the 1,606-room Hilton Anatole is down 6.2%; the Renaissance is down 8.7% and the Marriott City Center 7.3%. This is what the front end of a convention-center rebuild looks like: the Kay Bailey Hutchison's $3.5B phased reconstruction began in 2025 and now targets completion around 2030, with the center only partially operating in the meantime.

The other half of the market is having a perfectly good year. The Hyatt Regency DFW Airport is up 12.7%, the JW Marriott Arts District 11.9%, the Marriott Uptown 9.1%, the Rosewood Mansion on Turtle Creek 6.2%, the Ritz-Carlton 3.8%, the Hotel Crescent Court 3.7%, and the Swexan 23.2%. Luxury and uptown carry rate, airport hotels carry volume, and the group boxes wait out the construction. The metro's next demand jolt arrives just past this data: AT&T Stadium in Arlington hosts nine World Cup matches, including a semifinal, in June and July 2026, and Dallas holds a large share of the metro's rooms.

Sources: DALtoday: a timeline of the Kay Bailey Hutchison rebuild · CBS Texas: council finalizes construction plans for the center · Meetings + Events: the $3.7B renovation moves forward

The only big market not adding rooms

Dallas's registry capacity is 38,733 rooms, down 30 from a year ago, the only major Texas market not adding rooms. Twenty-six locations filed for the first time in the trailing year, but nearly all of that is rebrands and operator changes rather than construction, which the counts treat as the same building: the Thompson Dallas and a Le Meridien by the Galleria re-registered under new entities, and the Fairmont changed taxpayer numbers mid-2025, which is also why its roster growth rate is suppressed. On the other side of the ledger, several sizable properties simply stopped filing under their prior numbers, including the 326-room Westin Dallas Downtown and the 268-room Virgin Hotels Dallas; the filings cannot distinguish an ownership change from rooms leaving inventory, but the net registry count fell either way.

Short-term rentals are a non-story here: $127.0M in the trailing year, an 8.5% share, essentially unchanged since 2022.

The buyer's read, and the data notes

Dallas is a rotation story, not a growth story. A convention-district asset bought today is buying four more years of construction next door, with the payoff (a completed center and the city's projected step-up in bookings) arriving around 2030, at or beyond the edge of a typical hold. Underwrite those assets on the current soft numbers, not the rendering. The momentum, and the pricing power, sit in the luxury and uptown tier and at the airport, and a contracting citywide room base quietly supports rate everywhere. The World Cup gives June and July 2026 a one-time lift.

Data notes: the Hyatt Regency's December 2025 and the Adolphus's May 2026 filings are implausible single-month lumps; we suppress both properties' growth rates, and the market growth rate shown at the top of this page excludes flagged months at six properties (about $48M), which is why it reads minus 3.4% while the raw sums read flat. The Fairmont's mid-2025 taxpayer change distorts its roster figures. All figures are self-reported state tax filings, unaudited, and restated when operators amend.

Sources: DALtoday: a timeline of the Kay Bailey Hutchison rebuild