According to the Q3 2022 "Europe Hotel Construction Pipeline Trend Report" from Lodging Econometrics, Europe’s hotel construction pipeline stands at 1,660 hotels and 258,476 rooms as of the close of the third quarter. Projects under construction in Europe stand at 790 hotels and 126,899 rooms, while projects planning to start construction in the next 12 months recorded 408 hotels and 60,085 rooms. Projects in the early planning stage have 462 hotels and 71,492 rooms.
Travel activity in Europe has been rebounding over recent months and is expected to continue through the end of the year. Business-related travel is on the rise in the region and hotel bookings at resort destinations and major European cities are comparable to those seen in 2019. Reflective of a strong recovery and the growth in travel and hospitality demand, owners and investors have a positive outlook for the industry moving forward.
Hotel conversions in the region stand at an all-time high of 324 hotels with 46,977 rooms, a 51 percent and 61 percent year-over-year increase respectively, and the highest counts ever recorded by LE. Hotel renovations in Europe are also on the rise with 150 hotels and 22,594 rooms at Q3.
Top Markets
Europe’s leading countries with the most projects in the construction pipeline are the United Kingdom with 298 hotels and 45,173 rooms, Germany with 250 hotels and 43,523 rooms, France with 148 hotels and 16,611 rooms, Portugal with 126 hotels and15,185 rooms and Turkey with record highs of 86 hotels and 13,532 rooms.
The European cities with the largest pipelines at the Q3 close are London with 79 hotels and 14,139 rooms, Dusseldorf with 44 hotels and 7,959 rooms and Istanbul with all-time highs of 40 hotels and 7,548 rooms; followed by Paris with 34 hotels and 5,379 rooms and Lisbon with 34 hotels and 3,923 rooms.
Top Companies, Top Brands
Europe’s top hotel companies in the construction pipeline are Accor with 249 hotels and 33,941 rooms, Marriott International with 197 hotels and 30,698 rooms, Hilton with 177 hotels and 26,634 rooms and Intercontinental Hotels Group with 148 hotels and 20,071 rooms. These four companies account for 46 percent of projects in the total hotel construction pipeline in Europe. That percentage is expected to rise as some 23 percent of the projects in the pipeline have yet to select a brand.
The leading brands for these four companies are Accor's Ibis brands with 88 hotels and 10,395 rooms, Tribe by Accor with 25 hotels and 3,815 rooms and Novotel with 22 hotels and 3,316 rooms. Marriott International’s top brands at the close of Q3 are Moxy with 46 hotels and 7,807 rooms, Autograph Collection with 22 hotels and 2,952 rooms and Courtyard by Marriott with 19 hotels and 3,096 rooms. Hilton’s top brands in Europe are led by Hampton by Hilton with 63 hotels and 9,628 rooms, Hilton Garden Inn with 39 hotels and 5,992 rooms and Doubletree by Hilton with 23 hotels and 3,103 rooms. IHG’s top brands include Holiday Inn Express with 58 hotels and 8,413 rooms, Hotel Indigo with 17 hotels and 1,782 rooms and Holiday Inn with 16 hotels and 2,711 rooms.
During the third quarter of 2022, Europe opened 94 hotels with 13,637 rooms, bringing the total opens in Europe year-to-date in 2022 to 293 new hotels accounting for 43,332 rooms. LE analysts forecast another 98 hotels with 13,041 rooms to open in Q4 for a year-end total of 391 new hotels with 56,373 rooms. The LE forecast for new hotel openings expects 408 new hotels to open accounting for 59,684 rooms in 2023 and 419 new hotels with 60,246 rooms to open in 2024.