European Hotel Construction Pipeline Hits Record High in Early Planning Stage At Q1 2026 Close :: Hospitality Trends

Overview of Europe’s Hotel Construction Pipeline

According to the Q1 2026 Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), Europe’s hotel construction pipeline continues to expand. As of the end of the first quarter, the region recorded 1,731 hotel projects, totaling 255,354 rooms. This marks a 3% increase in both project and room counts compared to the same period in the previous year.

Growth in Construction and Planning Stages

Projects under construction reached 792, representing 119,106 rooms, a 3% year-over-year increase. Additionally, 335 projects with 50,120 rooms are scheduled to begin construction within the next 12 months. The early planning stage saw significant growth, reaching a record high of 604 projects and 86,128 rooms. This stage experienced a 14% increase in the number of projects and a 16% rise in rooms compared to the previous year.

Chain Scale Breakdown

The report provides a breakdown of the pipeline by hotel chain scale. The upscale segment closed the quarter with 389 projects and 60,855 rooms. The upper midscale segment accounted for 311 projects and 44,157 rooms. The upper-upscale segment reached a record high, with 297 projects and 48,479 rooms. The midscale segment included 195 projects and 27,356 rooms, while the luxury segment also hit a record with 179 projects and 21,729 rooms.

Leading Countries in Hotel Development

The United Kingdom leads Europe in hotel projects, with 268 projects and 39,024 rooms in the pipeline. Turkey follows with a record high of 157 projects and 21,274 rooms, while Germany has 144 projects and 24,923 rooms. France and Portugal round out the top five, with 125 projects (12,576 rooms) and 111 projects (13,707 rooms), respectively. Collectively, these five countries account for 46% of projects and 44% of rooms in Europe’s total pipeline at the close of Q1 2026.

Key Cities for Hotel Construction

London holds the largest city pipeline with 72 projects and 12,813 rooms. Istanbul follows with 47 projects and 7,072 rooms. Lisbon reached a record high with 39 projects and 4,378 rooms. Other notable cities include Tashkent (32 projects, 5,097 rooms) and Hamburg (25 projects, 4,880 rooms). Edinburgh also achieved record-high project and room totals, with 20 projects and 3,702 rooms.

Hotel Openings and Forecasts

In 2025, Europe saw the opening of 259 new hotels, adding 31,038 rooms. During the first quarter of 2026, 38 new hotels with 4,875 rooms opened. Forecasts for the remainder of 2026 predict the opening of an additional 281 hotels and 39,281 rooms. By the end of 2026, a total of 319 new hotels with 44,156 rooms are expected to open. Looking further ahead, analysts forecast 311 new hotels and 43,580 rooms to open in 2027.

Summary

The European hotel construction pipeline is experiencing steady growth, with record highs in early planning and in the luxury segment. The United Kingdom, Turkey, and Germany are leading the region in new hotel development. Major cities such as London, Istanbul, and Lisbon continue to see significant activity, reflecting ongoing investment in Europe’s hospitality sector. The forecast indicates continued expansion through 2027.