According to the European Hotel Construction Pipeline Trend Report in the third quarter of 2022 from Lodging Econometrics (LE), analysts report that at the end of the third quarter, the hotel construction pipeline in Europe stands at 1,660 projects/258,476 rooms. Projects under construction in Europe stand at 790 projects/126,899 rooms, while projects planning to start construction in the next 12 months registered 408 projects/60,085 rooms. Projects in the early planning stage have 462 projects/71,492 rooms.
Travel activity in Europe has recovered over the past few months and is expected to continue until the end of the year. Business-related travel is on the rise in the region and hotel bookings in holiday destinations and major European cities are similar to those seen in 2019. Reflecting a strong recovery and increased demand for travel and hospitality, owners and investors have a positive outlook for the advancing industry.
Hotel conversions in the region are at an all-time high of 324 hotels/46,977 rooms, up 51% and 61% year-on-year (YOY) respectively, and the highest counts ever recorded by LE. Hotel renovations in Europe are also on the rise with 150 hotels/22,594 rooms in the third quarter.
The leading European countries with the most projects in the construction pipeline are the UK with 298 projects/45,173 rooms, Germany with 250 projects/43,523 rooms, France with 148 projects/16,611 rooms, Portugal with 126 projects/15,185 rooms and Turkey with a record. A record of 86 projects/13,532 rooms.
The European cities with the largest pipelines at the close of the third quarter are London with 79 projects/14,139 rooms, Dusseldorf with 44 projects/7,959 rooms, and Istanbul with an all-time high of 40 projects/7,548 rooms; It is followed by Paris with 34 projects/5,379 rooms and Lisbon with 34 projects/3,923 rooms.
The leading European hotel companies in the construction pipeline are Accor with 249 projects/33,941 rooms, Marriott International with 197 projects/30,698 rooms, Hilton Worldwide with 177 projects/26,634 rooms, and Intercontinental Hotels Group (IHG) with 148 projects/20,071 rooms. These four companies account for 46% of the projects in the total hotel construction pipeline in Europe. This percentage is expected to increase because about 23% of the projects in the pipeline have not yet chosen a brand.
The leading brands of these four companies are the Ibis brands of Accor Hotel with 88 projects/10,395 rooms, Tribe by Accor with 25 projects/3,815 rooms and Novotel with 22 projects/3,316 rooms. Marriott International’s leading brands at the end of the third quarter are Moxy with 46 projects/7,807 rooms, Autograph Collection with 22 projects/2,952 rooms, and Courtyard by Marriott with 19 projects/3,096 rooms. Hilton Worldwide’s leading brands in Europe are led by Hampton by Hilton with 63 projects/9,628 rooms, Hilton Garden Inn with 39 projects/5,992 rooms, and Doubletree by Hilton with 23 projects/3,103 rooms. IHG’s leading brands include Holiday Inn Express with 58 projects/8,413 rooms, Hotel Indigo with 17 projects/1,782 rooms, and Holiday Inn with 16 projects/2,711 rooms.
During the third quarter of 2022, Europe opened 94 hotels/13,637 rooms, bringing total European year-to-date openings in 2022 to 293 new hotels accounting for 43,332 rooms. LE analysts expect another 98 hotels with 13,041 rooms to open in the fourth quarter, for a year-end total of 391 new hotels/56,373 rooms. The LE forecast for new hotel openings expects 408 new hotels to open with 59,684 rooms in 2023 and 419 new hotels / 60,246 rooms to open in 2024.
About Accommodation Econometrics (LE)
For nearly 25 years, Lodging Econometrics (LE) has been the industry’s leading provider of global hotel intelligence and contact information for decision makers. LE custom builds business development database programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies looking to expand their real estate portfolios, and hospitality industry suppliers looking to increase their sales. Learn more about our business development programs , contact us: +1 603.431.8740 or [email protected]lodgingeconometrics.com.
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