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Groundbreaking Event Marks Start of Sofitel Dublin Airport Hotel Construction – Image Credit Accor
Europe’s Hotel Construction Pipeline Reflects Strong Growth at Q1 Close
At the end of the first quarter of 2025, Europe’s hotel construction pipeline recorded 1,683 projects comprising 247,472 rooms, according to the Europe Hotel Construction Pipeline Trend Report by Lodging Econometrics (LE). The report revealed a significant increase in construction starts, new project announcements, and hotel renovations and brand conversions compared to the previous year.
Current Status of Projects
Of the total projects, 46% (766 projects and 115,227 rooms) are currently under construction. Furthermore, 386 projects, accounting for 57,992 rooms, are expected to commence construction within the following 12 months. The report also indicates that 531 projects, accounting for 74,253 rooms, are in the early planning phase.
Construction Starts and New Project Announcements
The report showed healthy activity in construction starts in the first quarter, with 90 projects and 11,184 rooms, marking a 14% year-over-year increase in projects. Additionally, new project announcements totaled 94 projects and 13,576 rooms.
Hotel Renovations and Brand Conversions
The first quarter of 2025 also saw strong growth in hotel renovations and brand conversions, with 718 projects and 93,305 rooms, signifying a 32% increase in projects and a 26% increase in rooms year-over-year.
Chain Scale Performance
The luxury and upper upscale chain scales achieved record highs with 132 projects/17,124 rooms and 281 projects/45,091 rooms, respectively. Meanwhile, the upscale chain scale comprised 358 projects/55,297 rooms, and the upper midscale chain scale closed the first quarter with 325 projects/47,738 rooms. These top two chain scales accounted for approximately 41% of the projects and 42% of the rooms in the entire pipeline.
Leading Countries and Cities
The United Kingdom led the region with the highest number of projects (288 projects/41,338 rooms) in the pipeline, followed by Germany, Turkey, France, and Portugal. These five countries represent 48% of the projects and 46% of the rooms in the region’s total pipeline. At the city level, London, Istanbul, Lisbon, Dublin, and Tashkent, Uzbekistan, have the largest pipelines by project count.
New Hotel Openings
The first quarter of 2025 witnessed the opening of 41 new hotels with 5,450 rooms. An additional 314 new hotels with 42,099 rooms are projected to open in the second to fourth quarter. By the end of the year, LE analysts predict a total of 355 new hotels and 47,549 rooms. Looking ahead, the forecast for new openings in Europe is set to rise, with 371 new hotels and 50,255 rooms anticipated to open in 2026.
