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Europe’s Hotel Construction Pipeline Dominated by Upscale Projects in Q3 2024 – Image Credit Unsplash
According to the Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), as of Q3 2024, nearly half of Europe’s hotel construction pipeline is currently under construction.
The report shows that 1,645 projects, or 244,548 rooms, are in the pipeline. Of these, 738 projects or 114,391 rooms (45% of projects and 47% of rooms), are under construction. Additionally, 399 projects or 57,828 rooms, are slated to start construction in the next year, while 508 projects or 72,329 rooms, are in the early planning stage.
The report also highlights that the majority of the projects in the pipeline are in the upscale segment, with 339 projects or 52,743 rooms. The upper midscale and upper upscale segments follow closely with 315 projects or 47,565 rooms, and 281 projects, or 45,358 rooms, respectively. Together, these three segments comprise 57% of the projects and 60% of the rooms in Europe’s total construction pipeline.
Conversion activity is also strong, with 497 projects or 60,403 rooms in Q3, marking a 33% increase in projects and 21% in rooms year-over-year. Including renovations and brand conversions, the total is 637 projects or 81,526 rooms.
The top five countries leading Europe’s construction pipeline are the United Kingdom, Germany, Turkey, Portugal, and France, accounting for 49% of the projects and 47% of the rooms. The cities with the largest pipelines are London, Istanbul, Lisbon, Dublin, and Manchester.
Q3 saw the opening of 83 new hotels accounting for 11,640 rooms, making the year-to-date total 220 hotels or 29,601 rooms. LE forecasts that an additional 107 hotels, or 13,856 rooms, will open in Q4, bringing the total for 2024 to 327 hotels or 43,457 rooms.
Additionally, LE predicts continued growth in new hotel openings, with 353 hotels or 51,463 rooms, scheduled to open in 2025 and 426 hotels or 57,350 rooms expected to open in 2026.
