The latest data from Lodging Econometrics reveals that the overall hotel
construction pipeline has remained relatively unchanged, year-over-year.
INTERNATIONAL REPORT — At the end of 2023, Europe’s
hotel construction pipeline remained relatively unchanged year-over-year,
according to the latest data from Lodging Econometrics. However, projects
scheduled to start construction over the next year and ones in the early planning
stages grew slightly YOY.
Overall,
at the end of 2023, the European hotel construction pipeline had 755 projects
and 115,300 rooms under construction, 418 projects and 64,835 rooms scheduled
to start over the next 12 months, and 533 projects and 74,208 rooms in the
early planning stages.
Like
in the U.S., renovations and brand conversion projects have surged in Europe
year over year, with a 21% increase in projects and a 10% increase in rooms.
There are 558 projects, and 76,231 rooms are currently underway. Conversions in
Europe, specifically for Q4, were up 33% by projects and 22% by rooms year over
year.
Bruce
Ford, senior vice president and director of global business development for LE, expects the
European pipeline to continue to increase. “As
the markets in Europe begin to recover, we can anticipate a wave of new project
announcements, which will drive the pipeline in Europe,” he said.
New projects also surged in the fourth quarter with 166
projects and 22,851 rooms announced, which represented a 55% increase in
projects announced quarter-over-quarter. In 2023’s last three months, 74
projected opened, which added 9,698 rooms to Europe’s existing supply. LE is
projecting the supply to grow in 2024 by 348 projects and 48,559 rooms.
In
early January, we talked about the construction pipeline in the U.S.
In
late January, we talked about the construction pipeline in Latin America.