By 2026, over 1,100 new hotels are expected to open across Europe, according to the Q2 2024 Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics.
In total, there are 1,680 hotel projects with 249,454 in various stages of development.
At the end of the second quarter, Europe had 755 hotel projects under construction, representing 45% of the total pipeline. These projects accounted for 117,908 rooms or 47% of the total planned rooms. Additionally, 412 more hotels with 59,850 rooms were slated to begin construction within the next year, contributing 25% of the total projects and 24% of the total rooms. The remaining 31% of projects were in the early planning stages, comprising 513 projects and 71,696 rooms.
Upscale hotels led the way with 358 projects and 55,936 rooms, accounting for 21% of the total pipeline. The upper midscale segment followed closely with 335 projects and 50,566 rooms, representing 20% of the pipeline. Additionally, upper upscale projects saw a significant increase of 9% year-over-year, reaching a record-high of 268 projects and 43,417 rooms. Notably, renovation and conversion projects also reached an all-time high of 825 projects and 95,519 rooms.
The UK (306 projects/43,515 rooms), Germany (178 projects/28,637 rooms), France (120 projects/12,831 rooms), Turkey (117 projects/17,856 rooms), and Portugal (114 projects/14,247 rooms) were the top five countries in terms of hotel construction projects in Europe, accounting for 50% of all projects and 47% of all planned rooms.
London (76 projects/14,954 rooms), Istanbul (50 projects/8,397 rooms), Lisbon (36 projects/4,425 rooms), Dublin (26 projects/5,012 rooms), and Dusseldorf had the largest hotel construction pipelines in Europe.
Europe saw a 72% increase in new hotel openings compared to Q1, with 81 hotels and 10,569 rooms added. In total, 128 new hotels with 16,829 rooms opened across Europe in H1. LE analysts predict that an additional 202 hotels with 27,106 rooms would open in H2, bringing the total forecast for 2024 to 330 hotels and 43,935 rooms.
LE forecasts that 368 hotels with 52,760 rooms will open in 2025. This growth trend is projected to continue into 2026, with an additional 427 hotels and 59,606 rooms anticipated to open.
