The United Kingdom, Turkey and Germany are leading Europe’s expanding hotel construction pipeline, with the continent recording 1,731 projects and 255,354 rooms at the close of the first quarter of 2026, according to new data from Lodging Econometrics (LE). The total represents a 3% increase in both projects and rooms compared to the same period a year earlier.
Hotels currently under construction across Europe total 792 projects and 119,106 rooms, also up 3% in both categories year-over-year. A further 335 projects with 50,120 rooms are scheduled to start construction within the next 12 months.
The most significant growth came at the earliest stage of development. The early planning stage reached a record high of 604 projects and 86,128 rooms, up 14% by projects and 16% by rooms year-over-year, signalling strong developer confidence in the continent’s hospitality market for years ahead.
Five countries dominate the pipeline
Five countries account for 46% of all projects and 44% of all rooms in Europe’s total pipeline. The United Kingdom leads the region by a considerable margin, followed by Turkey, which recorded its own country-level record.
- United Kingdom: 268 projects / 39,024 rooms
- Turkey: 157 projects / 21,274 rooms (record high)
- Germany: 144 projects / 24,923 rooms
- France: 125 projects / 12,576 rooms
- Portugal: 111 projects / 13,707 rooms
London and Istanbul lead at city level
London holds the largest city-level pipeline in Europe, with Istanbul, Lisbon and Hamburg also featuring prominently. Lisbon recorded a city-level record high, reflecting Portugal’s continued appeal as a hotel investment destination. Edinburgh also reached record-high project and room totals at the close of Q1 2026.
- London: 72 projects / 12,813 rooms
- Istanbul: 47 projects / 7,072 rooms
- Lisbon: 39 projects / 4,378 rooms (record high)
- Tashkent: 32 projects / 5,097 rooms
- Hamburg: 25 projects / 4,880 rooms
- Edinburgh: 20 projects / 3,702 rooms (record high)
Luxury and upper upscale segments hit record highs
Growth is not limited to volume. The luxury and upper upscale chain scales both reached record room totals at the close of Q1 2026, pointing to a shift toward premium hotel development across the continent. The upscale segment leads the overall pipeline by project count.
- Upscale: 389 projects / 60,855 rooms
- Upper midscale: 311 projects / 44,157 rooms
- Upper upscale: 297 projects / 48,479 rooms (record-high room total)
- Midscale: 195 projects / 27,356 rooms
- Luxury: 179 projects / 21,729 rooms (record high)
Openings on track through 2027
Europe opened 259 new hotels and 31,038 rooms throughout 2025. In the first quarter of 2026, 38 new hotels and 4,875 rooms opened across the continent, with an additional 281 new hotels and 39,281 rooms forecast to open in the remaining three quarters of the year.
LE analysts forecast a total of 319 new hotels and 44,156 rooms to open across Europe by the end of 2026. Looking further ahead, 311 new hotels and 43,580 rooms are projected to open in 2027, suggesting the current wave of construction activity will continue to deliver new supply well into the latter half of the decade.
The record levels seen in early planning, luxury development and key city pipelines indicate that investor and developer appetite for European hospitality remains strong, with several markets now tracking at their highest project totals on record.
