PORTSMOUTH, NH—According to the latest “Europe Hotel Construction Pipeline Trend Report” from Lodging Econometrics (LE), analysts report that at the close of the second quarter of 2020, Europe’s hotel construction pipeline increased 9% by projects and 13% by rooms to end the quarter with 1,851 projects and 295,038 rooms. Second quarter project and room counts are up slightly from last quarter’s totals.
Projects under construction stand at an all-time high of 923 projects/149,637 rooms. Projects scheduled to start construction in the next 12 months are at 477 projects/75,818 rooms. Projects in the early planning stage have 451 projects/69,583 rooms, up 16% and 26% respectively, YOY. During the first quarter of 2020, Europe opened a mere 35 new hotels with 5,998 rooms. This is the lowest number of project openings LE has recorded in the region since 2012 and is a result of halted construction projects in the region as a result of the pandemic.
The U.K., recording an all-time high, leads the construction pipeline with 350 projects/52,398 rooms, followed by Germany with 323 projects/58,533 rooms. France follows with 172 projects/21,405 rooms. Next is Portugal, also at an all-time high, with 123 projects/14,329 rooms, and then Poland with 91 projects/14,257 rooms.
The cities in Europe with the largest pipelines are London with 94 projects/16,542 rooms; Dusseldorf, Germany, at 57 projects/11,254 rooms; Paris at 40 projects/6,350 rooms; Lisbon, Portugal, with 38 projects and a record high room count total of 4,173; and Hamburg, Germany, also at an all-time high, with 35 projects/7,496 rooms.
Four global franchise companies account for 44% of all projects in Europe’s pipeline. They are Accor, which leads franchise companies in Europe with the largest pipeline by projects, at 236 projects/32,092 rooms. Accor is followed by Marriott International, with 217 projects/36,108 rooms. Hilton is next with an all-time high of 207 projects/32,696 rooms; InterContinental Hotels Group (IHG) follows with 151 projects/24,276 rooms.
The leading brands for these four companies are Accor’s Ibis brands with 106 projects/13,510 rooms and then Mercure and Novotel Hotels with 26 projects/3,075 rooms and 25 projects/3,890 rooms, respectively. Marriott International’s top brands are Moxy with 72 projects/12,876 rooms, Courtyard by Marriott with 27 projects/4,739 rooms, and Autograph Collection with 22 projects/2,873 rooms. Hilton is led by Hampton by Hilton at all-time record high totals of 79 projects/12,575 rooms, Hilton Garden Inn with 45 projects/7,545 rooms, and DoubleTree by Hilton with an all-time-high 30 projects having 3,802 rooms. IHG’s top brands include Holiday Inn Express with 65 projects/9,840 rooms, Holiday Inn with 28 projects/6,798 rooms, and Hotel Indigo with 17 projects/1,793 rooms.
Much like other regions around the world, Europe’s hotel construction pipeline is experiencing slight delays to project timelines of approximately two to four months.