EUROPE | Europe's hotel construction has seen an influx of new projects and construction in the second quarter of 2024.
In the Q2 2024 Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics, analysts reported the region’s total pipeline stands at 1,680 projects, with more than 249,454 rooms at the quarter’s close.
Hotel projects currently under construction in Europe at Q2 stand at 755 projects across 117,908 rooms, representing 45 percent of the projects and 47 percent of the rooms in the total pipeline. Projects planned to start construction in the next 12 months account for 412 projects and 59,850 rooms, making up 25 percent of the projects and 24 percent of the rooms. Projects in the early planning stage comprise 513 projects and 71,696 rooms, accounting for 31 percent of the projects and 29 percent of the rooms in the total pipeline.
At Q2, most pipeline projects in Europe are concentrated in the upper upscale, upscale, and upper midscale chain scales. The upscale chain scale leads with 358 projects for 55,936 rooms, accounting for 21 percent of the pipeline. The upper midscale segment follows closely with 335 projects or 50,566 rooms, representing 20 percent of the pipeline. Upper upscale projects account for 16 percent of the total projects, reaching a record-high 268 projects with 43,417 rooms and showing a nine percent increase in projects year-over-year. Notably, renovation and conversion projects in Europe reached an all-time high of 825 projects with 95,519 rooms in the second quarter.
The top countries in Europe’s construction pipeline are the United Kingdom (306 projects), Germany (178 projects), France (120 projects), Turkey (117 projects), and Portugal (114 projects).
These five countries combined account for 50 percent of the projects and 47 percent of the rooms in Europe’s total pipeline and are expected to lead in new hotel openings through 2026.
The cities with the largest pipelines are London, UK (76 projects representing 14,954 rooms), Istanbul, Turkey (8,397 rooms across 50 projects), Lisbon, Portugal (4,425 rooms across 36 projects), Dublin, Ireland (5,012 rooms across 26 projects), and Dusseldorf, Germany (4,448 rooms across 24 projects).
Europe experienced significant growth in new hotel openings during the second quarter with 81 hotels and 10,569 rooms opening, a 72 percent increase compared to the first quarter. In total, 128 new hotels with 16,829 rooms opened throughout Europe in the first and second quarters. Lodging Econometrics analysts forecast an additional 202 new hotels with 27,106 rooms to open in the third and fourth quarters, bringing the total forecast for new openings in 2024 to 330 hotels with 43,935 rooms.
As a result of the number of hotel projects currently under construction in Europe, the Lodging Econometrics forecast for new hotel openings will continue to climb in the coming years. Looking ahead, Lodging Econometrics predicts continued growth in new hotel openings, with 368 new hotels and 52,760 rooms scheduled to open in 2025. The newly released new hotel openings forecast for 2026 shows a further increase, with 427 new hotels and 59,606 rooms expected to open.
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