LONDON - The number of hotel openings in Europe is expected to hit an all-time high in 2021, with more than 100,00 new rooms estimated for the year, according to STR data and analysis that will be presented at this week’s International Hospitality Investment Forum (IHIF) in Berlin.
More than 50,000 rooms have opened thus far in 2021, which is already more than all of 2020, and scheduled openings for the remainder of the year are expected to grow the number to more than 100,000 total. That growth reflects delayed 2020 openings and limited cancellations of planned projects to date despite the significant disruption in performance from COVID-19.
The pace of openings is not expected to slow significantly in 2022, with a further 100,000 openings anticipated. Europe’s previous peak for new openings came in 2019 with 74,852 rooms.
“The pandemic led to far more delays than deferred and abandoned projects in Europe—yes, performance has suffered during the pandemic, but many investors are still counting on the resilience of the sector,” said Robin Rossmann, STR’s Managing Director. “While the impact of this supply influx will of course vary by market, there will be even greater competition for properties that have weathered the pandemic and hope to achieve meaningful levels of recovery over the coming years. These new openings will not be replacement supply as most properties that closed because of the pandemic have reopened.”
In addition to shifts in supply, Rossmann’s IHIF presentation on 1 September will cover leisure and business demand dynamics as well as the latest industry forecast.
Three additional STR executives are included in the IHIF lineup:
1 September March (14:50-15:20) – Robin Rossmann (managing director) – “Rip It Up and Start Again - A Global Trading Update”
2 September (8:15-9:00) – Thomas Emanuel (director) – “Rising Star: Opportunity in Portugal's Hospitality Market”
2 September (8:15-9:00) – Alex Robinson (senior manager, industry partners) – “Breakfast Roundtables - Investing in Greece”
3 September (11:30-12:30) – Aoife Roche (commercial director hotels) – “DACH market: Opportunities and Trends”.