PORTSMOUTH, N.H. — Europe’s hotel-construction pipeline stands at 1,824 projects/295,152 rooms at the close of the fourth quarter, according to the year-end 2021 Europe Hotel-Construction Pipeline Report by Lodging Econometrics (LE).
Europe has seen an increase in domestic and inter-regional travel over the past years. In addition, international arrivals to Europe increased nearly 75 per cent year-over-year (YOY).
At Q4 2021, projects under construction stand at 860 projects/142,898 rooms, down 11 per cent by projects and nine per cent by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 470 projects/ 72,194 rooms, down one per cent by projects and three per cent by rooms YOY. Projects and room counts in the early planning stage are both up seven per cent YOY, ending Q4 2021 with a record-high of 494 projects/80,060 rooms. Renovation and conversion project and room counts are up at the end of Q4, with a record high of 433 projects/62,368 rooms, up 19 per cent by projects and up 21 per cent by rooms YOY. Conversions at Q4 2021 reached a high of 293 projects and 40,088 rooms and renovations closed the quarter standing at 140 projects/22,280 rooms.
Accor leads franchise companies in Europe with the largest pipeline by projects, at 300 projects/42,846 rooms, followed by Hilton Worldwide with 216 projects accounting for 33,130 rooms. Marriott International is next, with 211 projects/33,353 rooms, followed by InterContinental Hotels Group (IHG) with 158 projects/23,486 rooms. These four companies account for 49 per cent of the projects in the total pipeline.
Top brands in Europe at Q4 2021 are led by Accor’s Ibis brands with 103 projects/12,505 rooms, then Mercure with 31 projects/4,169 rooms. Hilton Worldwide’s top brands at Q4 are its Hampton by Hilton brands with 84 projects/12,911 rooms and its Hilton Garden Inn brand with 47 projects/8,005 rooms. Marriott International’s top brands at Q4 are Moxy with 51 projects/8,684 rooms and Courtyard by Marriott with 23 projects/3,959 rooms. IHG’s top brands at Q4 are Holiday Inn Express with 64 projects/9,403 rooms and its Holiday Inn brand with 22 projects/4,403 rooms.
During the fourth quarter of 2021, Europe opened 87 hotels/12,204 rooms, for a total of 427 hotels and a record high of 62,272 rooms in 2021. LE is forecasting another 474 new hotels, accounting for 70,242 rooms, to open in 2022 and another 504 new hotels with 75,015 rooms to open in 2023.