New projects, conversions surging in Europe

INTERNATIONAL REPORT — New project announcements in Europe reached a yearly high in the fourth quarter, with conversions surging 26%, according to the latest data from Lodging Econometrics. 

Through the end of the fourth quarter, Europe's total pipeline is 1,661 projects and 244,464 rooms. There are 736 projects and 112,904 rooms currently under construction, 415 projects and 59,719 rooms scheduled to start construction within the next 12 months, and 510 projects and 71,841 rooms in the early planning stage.

New project announcements reached a yearly high in Q4, with 146 projects and 18,416 rooms entering the pipeline. Property conversions in the fourth quarter also increased by 26% in projects and a 13% rise in rooms year-over-year (year-over-year), reaching 520 projects and 61,550 rooms. Combined with hotel renovation activity in Europe in Q4, property updates total 667 projects and 84,289 rooms.

Upscale, upper midscale, and upper upscale projects continue to dominate the hotel construction pipeline in Q4 with upscale projects at 352 projects and 54,687 rooms, followed by upper midscale with 322 projects and 47,634 rooms, and upper upscale with 276 projects and 43,428 rooms. These three chain scales, combined, represent 57% of projects and 60% of total rooms in the pipeline. Luxury development has reached its strongest level since the fourth quarter of 2019, with 127 projects and 16,786 rooms under development.

The United Kingdom leads the region with 286 projects and 40,305 rooms, while Germany is second with 161 projects and 26,461 rooms, followed by Turkey with a record-high 130 projects and 19,038 rooms. France and Portugal round out the top five with 119 projects and 12,078 rooms and 113 projects and 14,059 rooms, respectively. These five countries account for 49% of the projects in the region's total pipeline.

London leads the market rankings through Q4 with 77 projects and 14,820 rooms, followed by Istanbul with 49 projects and 7,903 rooms, Lisbon with 35 projects and 3,976 rooms, Dublin with 24 projects and 4,285 rooms, and Tashkent, Uzbekistan with 24 projects and 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 and 48,564 rooms expected to open, and 399 new hotels and 51,964 rooms slated for 2026.