Europe’s hotel construction pipeline hits 1,690 projects in Q2 2025, marking a strong period of growth for the continent’s hospitality sector.
The latest Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) shows a mix of high-end developments, rapid early planning activity, and a wave of new openings that signal confidence in Europe’s tourism future.
Early Planning Surge Signals Long-Term Growth
At the close of the second quarter, 44% of projects in the European pipeline were already under construction, totaling 744 projects and 112,483 rooms. Yet the biggest movement is happening before shovels hit the ground: the early planning stage has reached a record-high 570 projects with 79,075 rooms, up 11% in project count and 10% in rooms year-over-year. These figures suggest a multi-year wave of hotel openings stretching well beyond 2025.
LE analysts report that another 376 projects, comprising 57,414 rooms, are scheduled to begin construction within the next 12 months. This forward momentum reflects a combination of investor optimism, tourism demand, and infrastructure readiness in key markets.
Luxury and Upscale Segments Hit New Highs
The luxury hotel segment in Europe is thriving, with a record 169 projects (21,550 rooms) now in the pipeline. The upper upscale category has also reached new heights, with 283 projects totaling 45,376 rooms. Upscale and upper midscale hotels dominate by volume, accounting together for 40% of all projects and 40% of total rooms in development. This trend reflects a push to serve both affluent travelers seeking high-end experiences and value-conscious guests looking for reliable comfort.
LE’s data also shows that mid-market brands are maintaining steady growth, ensuring a balanced mix of accommodations that can cater to diverse tourism markets—from major capitals to emerging regional destinations.
Leading Countries and Cities in Development
The United Kingdom holds the top spot in Europe’s pipeline with 282 projects and 39,730 rooms. Germany follows with 157 projects/26,861 rooms, and Turkey—currently experiencing a record-high development surge—comes in third with 138 projects/19,984 rooms. France (118 projects/11,242 rooms) and Portugal (111 projects/13,987 rooms) round out the top five, together representing nearly half of all hotel development activity in Europe.
On the city level, London leads with 79 projects/14,276 rooms. Istanbul ranks second with 49 projects/7,779 rooms, followed by Lisbon (37 projects/4,370 rooms), Tashkent (28 projects/4,808 rooms), and Dublin (27 projects/4,888 rooms). This distribution shows a blend of established tourism hubs and fast-growing urban centers attracting hotel investment.
New Openings and Forecast
In the first half of 2025, 119 new hotels (15,381 rooms) opened across Europe. LE forecasts another 220 openings (29,854 rooms) before the year ends, bringing the 2025 total to 339 new properties with 45,235 rooms. Looking ahead, the extended forecast anticipates 345 new hotels (48,448 rooms) opening in 2026 and 358 new hotels (50,247 rooms) in 2027.
Renovations and brand conversions remain an important part of Europe’s hotel landscape, with 668 projects and 85,099 rooms currently in the works. This indicates that hotel growth isn’t limited to new builds—many operators are upgrading existing properties to meet changing traveler expectations, sustainability goals, and brand standards.
For travelers, the next few years will bring an increasingly diverse range of accommodation options—from luxury stays in cultural capitals to new lifestyle hotels in emerging destinations. Whether exploring the historic streets of Lisbon, experiencing Istanbul’s blend of East and West, or discovering smaller cities like Tashkent now making their mark on the tourism map, visitors can expect fresh openings to redefine the European travel experience.
