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The city with the largest pipeline is London, with 77 projects (14,820 rooms) – Image Credit Hyatt
The European hotel sector is experiencing a surge in growth, with 1,661 projects in the pipeline and a 26% increase in property conversions at the end of Q4 2024.
The latest Europe Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that at the end of Q4 2024, Europe’s total hotel construction pipeline comprised 1,661 projects, which equates to 244,464 rooms. At this stage, 736 projects (112,904 rooms) were under construction, 415 projects (59,719 rooms) were due to start within the next 12 months, and 510 projects (71,841 rooms) were in the early planning phase.
The report also reveals a year-on-year increase in new project announcements, with 146 projects (18,416 rooms) entering the pipeline during Q4. This coincides with a substantial 26% rise in property conversions, amounting to 520 projects (61,550 rooms), a 13% increase in rooms year-over-year. When combined with hotel renovation activity, property updates totalled 667 projects (84,289 rooms).
The hotel construction pipeline continues to be dominated by upscale, upper midscale, and upper upscale projects, accounting for 57% of the projects and 60% of the total rooms. Luxury development has reached its highest level since Q4 2019, with 127 projects (16,786 rooms).
The United Kingdom leads in the region with 286 projects (40,305 rooms), followed by Germany with 161 projects (26,461 rooms) and Turkey with a record-high 130 projects (19,038 rooms). France and Portugal round off the top five countries with the largest project counts in Europe at Q4, totaling 49% of the projects in the region’s pipeline.
The largest cities with pipelines include London, with 77 projects (14,820 rooms); Istanbul, with 49 projects (7,903 rooms); Lisbon, with 35 projects (3,976 rooms); Dublin, with 24 projects (4,285 rooms); and Tashkent, Uzbekistan, with 24 projects (4,091 rooms).
In 2024, 289 new hotels offering 38,681 rooms were opened throughout Europe. LE analysts foresee continued growth in new hotel openings in 2025, with 342 new hotels (48,564 rooms) expected to open and 399 new hotels (51,964 rooms) slated for 2026.
