Early Planning Drives Europe's Hotel Construction In Q1

The United Kingdom has the highest number of construction projects with 340 and 47,551 rooms. Germany comes in second with 238 projects and 40,368 rooms. France is third with 139 projects and 15,889 rooms.

The hotel construction pipeline in Europe is at 1,776 projects/266,901 rooms. This info comes from the Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics. This report was released in the first quarter of the year. The report was put together by analysts at LE.

814 projects with 125,657 rooms are under construction. Another 419 projects with 62,625 rooms will start in the next 12 months. In the early planning stage, there are 543 projects with 78,619 rooms, up by 17% and 12% respectively compared to last year. The latest quarter saw 203 project announcements with 26,740 rooms. Construction starts were also up in Q1 with 126 projects and 17,163 rooms.

Travel to popular European tourist spots was steady in the first quarter. As the region prepares to host major events like the Spanish Grand Prix, French Open, and Tour de France, lodging demand will increase. Plus, major events like Wimbledon, UEFA Champions League Final, and Summer 2024 in Paris and Winter 2026 Olympics in Milan and Cortina d’Ampezzo will keep the demand high. Developers are responding to the demand by announcing new projects and starting work on early planning stages.

Europe's top countries for construction projects are UK with 340/47,551 rooms, Germany with 238/40,368 rooms, and France with 139/15,889 rooms. Portugal has 130 projects/15,419 rooms and Turkey has 108 projects/15,862 rooms. Together, they make up 54% of projects and 51% of rooms in the Q1 pipeline.

London has the most pipeline projects of all the cities in Europe, with 90 projects and 15,393 rooms. Istanbul has broken records with a whopping 42 projects and 7,360 rooms, followed by Dusseldorf with 38 projects and 7,080 rooms. Lisbon has 35 projects and 4,073 rooms, while Dublin has 31 projects and 5,873 rooms.

Accor has the most hotel projects in Europe with 277. Hilton comes second with 202 projects. Marriott is third with 185 hotel projects. IHG has 148, and Radisson has 49. These five companies make up 48% of all hotel projects in Europe. They also have 47% of all the rooms in the pipeline.

At the start of Q1, these franchise companies had top brands. Ibis brands from Accor had 94 projects and 11,137 rooms. Hampton brands from Hilton had 73 projects and 10,590 rooms. Moxy brand from Marriott had 41 projects and 6,700 rooms. Holiday Inn Express from IHG had 52 projects and 7,090 rooms. Radisson Red had 11 projects and 2,256 rooms.

More hotels are expected to open in 2023, with 452 new projects and 62,519 rooms. The number is even higher for 2024, with 409 new projects and 56,632 rooms predicted to open.

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