The Lodging Econometrics (LE) has recently published the Europe Hotel Construction Pipeline Trend Report for Q4 2023, showcasing a vibrant hotel development landscape across the continent.
The report highlights a total of 1,706 projects and 254,937 rooms in the pipeline at the end of the fourth quarter.
At the close of the year, the construction pipeline includes 755 projects with 115,300 rooms underway, alongside 418 projects (64,835 rooms) planned to commence within the next year. Additionally, 533 projects totaling 74,802 rooms are in the preliminary planning phase. A significant rise in announced renovation and conversion projects marks a 21% increase in projects and a 10% growth in rooms year-over-year, culminating in 558 projects and 76,231 rooms.
The pipeline is predominantly filled with upper upscale, upscale, and upper midscale projects, with upper upscale projects reaching a record 266 projects/44,003 rooms. Upscale and upper midscale projects follow closely, underscoring the demand for varied accommodation options across Europe.
Leading the charge in hotel construction, the United Kingdom showcases the most significant number of projects, followed by Germany, France, Turkey, and Portugal. These countries represent over half of the ongoing projects in Europe’s total hotel construction pipeline.
Major European cities like London, Istanbul, Lisbon, Dublin, and Dusseldorf are at the forefront, featuring the largest hotel construction pipelines, indicating a strong focus on urban development and tourism.
The year 2023 saw the opening of 316 new hotels, adding 41,866 rooms to Europe’s accommodation offerings. Looking ahead, LE analysts project an uptrend in hotel openings, with 348 new hotels expected in 2024 and 383 hotels forecasted for 2025, highlighting a robust growth trajectory in the European hotel sector.
