Europe’s hotel construction pipeline reached record highs at the end of Q4 2025, particularly in early planning, upper upscale, and luxury segments, with the United Kingdom, Germany, and Turkey leading development activity across the region.
Overview of Hotel Construction Trends in Europe
The latest Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) shows significant growth in hotel development across the continent. As of the end of the fourth quarter of 2025, the total hotel construction pipeline in Europe includes 1,717 projects, representing 252,600 rooms. This figure encompasses projects at various stages, from those already under construction to those in early planning.
Breakdown of Pipeline Stages
At the close of Q4 2025, the report identifies 754 projects (115,289 rooms) as currently under construction. An additional 375 projects (54,097 rooms) are scheduled to begin construction within the next 12 months. The early planning stage, which reached record highs, now includes 588 projects (83,214 rooms). Compared to the previous year, the early planning stage saw a 15% increase in projects and a 16% increase in rooms.
Renovations and Brand Conversions
Hotel renovations and brand conversions remain a significant part of the pipeline. At the end of Q4 2025, there were 700 projects (90,066 rooms) categorized as either renovations or conversions. This activity reflects ongoing efforts to update existing properties and rebrand hotels to meet changing market demands.
Segment Analysis: Upscale, Upper Upscale, and Luxury
Upscale and upper-midscale hotels continue to account for the largest share of new developments. Upscale projects lead with 367 projects (57,028 rooms), while upper midscale follows with 312 projects (44,224 rooms). The upper upscale segment reached a record high, with 307 projects (48,969 rooms) in the pipeline. The luxury segment also achieved a record-high project count, totaling 174 projects (21,249 rooms).
Geographic Distribution: Leading Countries
The United Kingdom is the most active country in hotel development, with 274 projects (39,515 rooms) in the pipeline. Germany follows with 147 projects (25,616 rooms), and Turkey has reached a record high with 146 projects (20,499 rooms). France and Portugal round out the top five, with 126 projects (12,908 rooms) and 111 projects (13,820 rooms), respectively. These five countries collectively account for 47% of all projects and 44% of rooms in Europe’s pipeline.
City-Level Activity
London leads European cities in hotel development, with 76 projects (13,657 rooms) in the pipeline. Istanbul follows with 48 projects (7,364 rooms). Lisbon has reached record highs with 39 projects (4,444 rooms). Tashkent, Uzbekistan, and Dublin, Ireland, are also notable, with 32 projects (5,035 rooms) and 25 projects (4,648 rooms), respectively.
Forecast for New Openings
In 2025, 255 new hotels (30,603 rooms) opened across Europe. The report forecasts continued growth, with 315 new hotels (44,666 rooms) expected to open in 2026 and 320 new hotels (44,625 rooms) projected for 2027. This trend indicates ongoing expansion in the European hotel market, with a focus on both new construction and the renovation or conversion of existing properties.
