Lodging Econometrics (LE) has published its Q2 2025 Hotel Construction Pipeline Trend Report for Europe, indicating significant growth in the region’s hotel construction activities. As of the second quarter’s close, the total pipeline includes 1,690 projects and 248,972 rooms. Notably, 44% of these projects are in the under-construction stage, comprising 744 projects and 112,483 rooms.
Early Planning Stage and Chain Scale Developments
The early planning stage has reached a record high with 570 projects and 79,075 rooms, marking an 11% increase in projects and a 10% increase in rooms year-over-year (YOY). The luxury chain scale has also achieved a record high of 169 projects and 21,550 rooms, while the upper upscale chain scale has reached 283 projects and 45,376 rooms. The upscale chain scale includes 359 projects and 55,494 rooms, and the upper midscale chain scale closed the second quarter with 311 projects and 44,921 rooms. Together, the upscale and upper midscale chain scales account for 40% of both projects and rooms in the region’s total construction pipeline.
Development Pipeline Activity
The second quarter saw robust development pipeline activity, with construction starts totaling 94 projects and 13,338 rooms, reflecting a 12% increase in projects YOY. New project announcements also demonstrated strong growth, with 121 projects and 17,982 rooms, representing a 15% increase in projects and a 36% increase in rooms YOY. Additionally, combined hotel renovations and brand conversions in Europe at Q2 stand at 668 projects and 85,099 rooms.
Leading Countries and Cities
The countries with the greatest number of projects in the pipeline at Q2 are led by the United Kingdom with 282 projects and 39,730 rooms. Germany follows with 157 projects and 26,861 rooms, Turkey with a record-high 138 projects and 19,984 rooms, France with 118 projects and 11,242 rooms, and Portugal with 111 projects and 13,987 rooms. These five countries account for 48% of the projects and 45% of the rooms in the region’s total pipeline at Q2.
European cities with the largest pipelines by project count at the close of the second quarter include London with 79 projects and 14,276 rooms, Istanbul with 49 projects and 7,779 rooms, Lisbon with 37 projects and 4,370 rooms, Tashkent with 28 projects and 4,808 rooms, and Dublin with 27 projects and 4,888 rooms.
Future Outlook and Forecasts
During the first half of 2025, 119 new hotels with 15,381 rooms opened throughout Europe. An additional 220 new hotels with 29,854 rooms are forecast to open in the third and fourth quarters. LE analysts predict a total of 339 new hotels with 45,235 rooms to open by the end of 2025. Looking ahead, the extended forecast anticipates 345 new hotels with 48,448 rooms to open in 2026, followed by 358 new hotels with 50,247 rooms in 2027.
In summary, Europe’s hotel construction pipeline is experiencing significant growth, particularly in the early planning stage and within the luxury and upscale chain scales. The development pipeline remains robust, with notable activity in key countries and cities across the region. The outlook for the coming years suggests continued expansion, with numerous new hotel openings anticipated through 2027.
