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HomeRegional NewsEuropeUpper upscale projects in Europe’s hotel construction pipeline reach record-highs at Q4

Upper upscale projects in Europe’s hotel construction pipeline reach record-highs at Q4

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(Park Plaza Westminster Bridge London - Penthouse Terrace).

LE analysts anticipate a continued strong trend in new hotel openings into 2024, with 348 new hotels and 48,559 rooms expected to open, and a forecast of 383 new hotels with 52,337 rooms slated for 2025.

PORTSMOUTH, NH – The recent Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that the region’s total pipeline stands at 1,706 projects/254,937 rooms at the end of Q4 ‘23.

At year-end, the hotel construction pipeline in Europe includes 755 projects with 115,300 rooms currently under construction, with an additional 418 projects/64,835 rooms scheduled to start construction in the next 12 months. Furthermore, 533 projects/74,802 rooms are in the early planning stage. Notably, announced renovation and conversion projects have seen a significant uptick, rising 21% in projects and 10% in rooms year-over-year (YOY) at the end of Q4; reaching 558 projects and 76,231 rooms. Conversions in Q4 alone increased by 33% in projects and 22% in rooms year-over-year, ending the quarter with 412 projects and 54,273 rooms.

Upper upscale, upscale, and upper midscale projects dominate the hotel construction pipeline at Q4. Upper upscale projects in Europe reached record-highs at Q4 with 266 projects/44,003 rooms; upscale projects stand at 354 projects/56,304 rooms; and upper midscale projects closed the quarter with 302 projects/46,655 rooms.

The United Kingdom leads the region with the highest number of projects in the hotel construction pipeline at Q4, boasting 322 projects and 43,990 rooms. Germany follows with 195 projects and 31,839 rooms, followed by France with 127 projects and 14,224 rooms, then Turkey with a record-high of 118 projects and 17,752 rooms, and Portugal with 114 projects and 13,869 rooms. These five countries account for 51% of the projects in the region’s overall pipeline.

European cities with the largest pipelines at Q4 are led by London with 77 projects/13,699 rooms, Istanbul with 53 projects/8,911 rooms, Lisbon with 36 projects/4,013 rooms, Dublin with 32 projects/6,106 rooms, and Dusseldorf with 28 projects/5,228 rooms.

In 2023, 316 new hotels with 41,866 rooms opened throughout Europe.

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Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.