4 companies account for half of Europe's hotel pipeline

Germany leads Europe's hotel construction pipeline. Photo credit: AdventurePicture/iStock/Getty Images Plus/Getty Images

Europe’s hotel construction pipeline has continued to grow this year with 1,670 hotels and 254,600 rooms on the way, according to analysts at Lodging Econometrics. This is a 22 percent increase in projects and a 19 percent increase in rooms year over year.

There has been an optimistic, upward trend in the European service and construction sectors, which is offsetting the weak outlook for exports and the ongoing shortfalls in manufacturing. New construction is being positively impacted by accommodative lending policies. Unemployment is at a 19-year low—yet an economic slowdown is still predicted for 2019.

By the Numbers

Europe has 844 hotels with 133,620 rooms currently under construction and 480 hotels and 72,588 rooms planning to start construction in the next 12 months, both stages record highs. The early planning stage stands at 346 hotels and 48,392 rooms, slightly off its record high at 2018 year-end.

New project announcements—with 360 hotels and 50,337 rooms—and construction starts—with 223 hotels and 33,973 rooms—have both reached all-time highs, both quarter over quarter and on a rolling four-quarter basis.

As a result of these positive pipeline trends, the LE forecast for new hotel openings will continue to grow with 390 new hotels and 53,241 rooms poised to open in 2019 and a further 426 new hotels with 61,490 rooms in 2020, a new record high.

Top Countries, Cities

Europe’s leading countries in terms of construction pipeline are Germany, which is at an all-time high with 319 hotels and 57,152 rooms and the United Kingdom with 261 hotels and 37,910 rooms, marginally trailing the record set in 2018. France and Portugal follow, both also at record highs, with 188 hotels and 22,537 rooms and 121 hotels and 12,190 rooms, respectively. Next is Poland with 91 hotels and 13,748 rooms.

The cities with the largest pipelines are London with 78 hotels and 13,285 rooms; Paris with 60 hotels and 9,255 rooms; Dusseldorf, Germany, with 53 hotels and 10,347 rooms; Lisbon, Portugal, with 39 hotels and 3,457 rooms; and Hamburg, Germany, with 31 hotels and 6,101 rooms.

Top Companies, Top Brands

Franchise companies with the largest construction pipelines are Accor at a record high, with 256 hotels and 35,073 rooms. Next is Marriott International with 208 hotels and 33,395 rooms, just short of its high set in 2018. Hilton follows with 172 hotels and 26,466 rooms, and InterContinental Hotels Group with 147 hotels and 24,483 rooms, also just shy of its 2018 high. These four companies account for 47 percent of the projects and rooms in the total pipeline.

The leading brands for each of these franchise companies are Accor’s Ibis brands with 134 hotels and 16,901 rooms; Mercure Hotel, at an all-time high, with 28 hotels and 2,918 rooms; and Novotel with 25 hotels and 4,246 rooms. Marriott International’s top brands are Moxy with 64 hotels and 11,422 rooms; Courtyard by Marriott with 33 hotels and 5,758 rooms; and Residence Inn, at an all-time high, with 17 hotels and 1,607 rooms. Hilton has Hampton Inn with 70 hotels and 10,790 rooms, Hilton Garden Inn at 43 hotels and 6,416 rooms and DoubleTree by Hilton with 23 hotels and 2,985 rooms. IHG’s top brands are Holiday Inn Express with 72 hotels and 10,900 rooms, Holiday Inn with 33 hotels and 7,541 rooms and Hotel Indigo with 13 hotels and 1,554 rooms.