Europe’s construction pipeline surged in 4Q24

INTERNATIONAL REPORT — The European hotel sector demonstrated resilience throughout 2024, with the fourth quarter showing momentum in new developments, according to the latest data from Lodging Econometrics. 

The data shows Europe’s total construction pipeline reached 1,661 projects and 244,464 rooms through the end of Q4 2024. New project announcements also hit a yearly high in Q4, with 146 projects and 18,416 rooms entering the pipeline. This growth was distributed across 25 European cities that announced two or more new projects during the quarter. London led this expansion, followed by Istanbul; Timisoara, Romania; Bucharest, Romania and Izmir, Turkey.

Construction activity also increased in the fourth quarter, with 84 projects and 10,523 rooms breaking ground. While Dublin, Ireland; Lisbon, Portugal and London saw the highest concentration of construction starts, development activity was widespread, with 19 cities across Europe beginning construction on two or more new hotel projects during the quarter.

“The European hotel market continues to demonstrate exceptional vitality despite global economic uncertainties,” said Bruce Ford, senior vice president and director of global business development for Lodging Econometrics. “The strong pipeline figures we’re seeing, particularly the surge in new project announcements during Q4, reflect ongoing investor confidence in the long-term prospects of Europe’s tourism and business travel sectors.”

There were 289 newly opened hotels and 38,681 rooms in Europe in 2024, with London leading markets with 18 projects and 2,460 rooms, followed by Istanbul (10 projects and 1,453 rooms). Dublin, Ireland and Tbilisi, Georgia, added 5 hotels (contributing 914 and 596 rooms, respectively), while Bristol, U.K.; Edinburgh, Scotland; Lisbon and Manchester, U.K. each had four new properties open.

Europe’s robust construction pipeline suggests continued expansion in 2025, positioning the region for even more growth.