LE: Europe ends ’22 with robust construction pipeline

In the year-end 2022 Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that at the close of the fourth quarter, Europe’s total construction pipeline stood at 1,711 projects/260,911 rooms.

At the Q4 close, there were 784 projects/123,377 rooms under construction, 403 projects/60,724 rooms scheduled to start construction in the next 12 months and projects in the early planning stage reached a record-high count of 524 projects, accounting for 76,810 rooms.

Despite slowed economic growth throughout the region last year, Europe remains the most popular tourist destination in the world, with six of the top 10 most visited international tourist destinations located in the region. Travel activity in Europe is expected to continue to rebound this year and as hotel operating performance increases, owners, investors and franchise companies will continue to focus on development efforts in the region.

Countries in Europe with the most projects in the construction pipeline at the Q4 close were led by the U.K. with 295 projects/43,332 rooms, followed by Germany with 257 projects/43,952 rooms, France with 152 projects/17,267 rooms, Portugal with 130 projects/15,353 rooms and Turkey with record-highs of 92 projects and 14,521 rooms prior to the earthquake.

The cities with the largest pipelines were London with 75 projects/12,850 rooms, Istanbul with record project and room counts of 42 projects/7,997 rooms prior to the earthquake, Dusseldorf with 42 projects/7,817 rooms, Lisbon with 35 projects/3,878 rooms and Paris with 31 projects/5,174 rooms.

Europe’s top hotel companies in the construction pipeline at year-end 2022 were led by Accor with 286 projects/37,617 rooms and Hilton with 195 projects/28,984 rooms. Next was Marriott International with 185 projects/28,854 rooms, InterContinental Hotels Group (IHG) with 153 projects/20,497 rooms and Radisson Hotel Group with 45 projects/8,037 rooms. These five companies were responsible for 50% of the projects and 48% of the rooms in the region’s total pipeline.

The leading brands for new development in Europe were Accor’s Ibis brands with 99 projects/11,652 rooms and Mercure Hotel, with 30 projects/3,061 rooms. Hilton’s top brands in Europe were led by Hampton by Hilton with 74 projects/10,762 rooms and Hilton Garden Inn with 41 projects/6,267 rooms. Marriott’s top brands were Moxy with 41 projects/6,693 rooms and the Autograph Collection with 21 projects/3,035 rooms. IHG’s top brands at the Q4 close included Holiday Inn Express with 58 projects/8,019 rooms and Holiday Inn with 19 projects/3,180 rooms.

Through the fourth quarter of 2022, 373 new hotels with 55,647 rooms opened in Europe. New project announcements increased substantially over the last three quarters, suggesting there will be more new hotel openings in the region in the years ahead compared to 2022. The LE forecast for new hotel openings expects 424 new hotels to open, accounting for 61,534 rooms, in 2023 and 396 new hotels/55,280 rooms to open in 2024.