According to the Q3 2024 Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics, the region's total pipeline stands at 1,645 hotels and 244,548 rooms.
Claiming 45 percent of the projects and 47 percent of the rooms in the total pipeline in Europe at Q3, projects currently under construction stand at 738 hotels and 114,391 rooms. Projects scheduled to start construction in the next 12 months account for 399 hotels and 57,828 rooms, making up 24 percent of both projects and rooms. Projects in the early planning stage comprise 508 hotels and 72,329 rooms, accounting for 31 percent of the projects and 29 percent of the rooms in the total pipeline.
At the end of the third quarter, Europe’s construction pipeline continues to be led by projects in the upscale segment with 339 hotels and 52,743 rooms. Upper midscale follows with 315 hotels and 47,565 rooms, showing a notable 9 percent increase in projects year over year. The upper upscale segment reached record highs this quarter, with 281 hotels and 45,358 rooms, representing an 11 percent increase in projects and an 8 percent increase in rooms year over year. Combined, these three chain scales account for 57 percent of the projects and 60 percent of the rooms in Europe's total construction pipeline.
Further, conversion activity remains robust in Europe at Q3, with 497 hotels and 60,403 rooms, showing a substantial 33 percent increase in projects and a 21 percent increase in rooms year over year. Combined, hotel renovations and brand conversions total 637 hotels and 81,526 rooms.
Top Markets
The leading countries in Europe's construction pipeline are the United Kingdom with 293 hotels and 42,071 rooms, Germany with 172 hotels and 28,304 rooms, Turkey with record highs of 123 hotels and 18,465 rooms, Portugal with 114 hotels and 14,048 rooms and France with 105 hotels and 11,025 rooms. These five countries combined account for 49 percent of the projects and 47 percent of the rooms in Europe's total pipeline.
The cities with the largest pipelines are London with 75 hotels and 14,985 rooms, Istanbul with 51 hotels and 8,255 rooms, Lisbon with 36 hotels and 4,050 rooms, Dublin with 25 hotels and 4,665 rooms and Manchester with 23 hotels and 4,345 rooms.
In Q3 2024, Europe opened 83 new hotels accounting for 11,640 rooms, bringing the total year-to-date openings to 220 new hotels with 29,601 rooms. LE's forecast for new hotel openings expects an additional 107 new hotels/13,856 rooms to open in Q4, bringing the year-end total for 2024 to 327 new hotels with 43,457 rooms.
Looking ahead, LE predicts continued growth in new hotel openings with 353 new hotels and 51,463 rooms scheduled to open in 2025, and 426 new hotels with 57,350 rooms expected to open in 2026.