PORTSMOUTH, N.H. — The recent Europe Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that at the end Q4 2024, the region’s total pipeline is 1,661 projects/244,464 rooms.
At the Q4 close, there are 736 projects/112,904 rooms currently under construction in Europe, 415 projects/59,719 rooms scheduled to start construction anytime within the next 12 months, and 510 projects/71,841 rooms in the early planning stage.
New project announcements reached a yearly high at Q4, with 146 projects/18,416 rooms entering the pipeline. Property conversions in Europe at the end of Q4 2024 increased a substantial 26 per cent in projects and a 13-per-cent rise in rooms year-over-year (YOY), reaching 520 projects/61,550 rooms. Combined with hotel renovation activity in Europe at Q4, property updates total 667 projects/84,289 rooms.
Upscale, upper-midscale, and upper-upscale projects continue to dominate the hotel construction pipeline at Q4. Upscale projects lead with 352 projects/54,687 rooms, followed by upper midscale with 322 projects/47,634 rooms, and upper upscale with 276 projects/43,428 rooms. These three chain scales, combined, represent 57 per cent of projects and 60 per cent of total rooms in the pipeline. Notably, luxury development has reached its strongest level since Q4 2019, with 127 projects/16,786 rooms.
The U.K. leads the region with 286 projects/40,305 rooms. Germany follows with 161 projects/26,461 rooms, then Turkey with a record-high 130 projects/19,038 rooms. France and Portugal complete the top five countries with the largest project counts in Europe at Q4, with 119 projects/12,078 rooms and 113 projects/14,059 rooms, respectively. These five countries account for 49 per cent of the projects in the region’s total pipeline.
European cities with the largest pipelines at Q4 are led by London with 77 projects/14,820 rooms, Istanbul with 49 projects/7,903 rooms, Lisbon with 35 projects/3,976 rooms, Dublin with 24 projects/4,285 rooms, and Tashkent, Uzbekistan with 24 projects/4,091 rooms.
In 2024, 289 new hotels with 38,681 rooms opened throughout Europe. LE analysts forecast continued growth in new hotel openings in 2025, with 342 new hotels/48,564 rooms expected to open, and 399 new hotels/51,964 rooms slated for 2026.
