According to the latest hotel construction pipeline trends report from Lodging Econometrics (LE), Europe ends the first quarter of 2022 with 1,781 projects/277,290 rooms. An 8% decrease in projects and an 11% decrease in rooms year-on-year (YOY).
Projects under construction stand at 875 projects/141,304 rooms, at the end of Q1 ’22, while projects scheduled to start in the next 12 months stand at 443 projects/65,611 rooms. Early planning stage projects are at 463 projects/70,375 rooms, projects at this stage are up 5% per projects and down 1% per rooms YOY.
As in other parts of the world, the last two years have been difficult for the European hotel industry. And now, with the conflict between Russia and Ukraine, the hotel construction pipeline in Europe is once again experiencing delays as developers suspend projects and cease development activities in these countries. The pace of new hotel openings in Europe has fallen sharply over the past three quarters. Last year, in the second quarter of 2021, new hotel openings reached a record 169 hotels/24,472 rooms; as many hotels that have been delayed during COVID have been pushed and completed. However, by the end of Q1 22, that number had dropped to 60 new hotel openings, representing 8,931 rooms. This is still above the region’s lowest new hotel opening point, which occurred during the COVID peak in Q2 ’20, in which only 37 hotels/6,871 rooms opened.
Even with the ongoing conflict between Russia and Ukraine, there are encouraging signs for the hospitality industry in Europe. Several countries and those that are popular tourist destinations have seen a steady increase in business and leisure travel demand over the past few months. As we enter the summer season, the surge in travel and hotel demand is expected to continue to increase.
According to LE analysts, the top construction pipeline countries in Europe by number of projects in Q1 22 are the UK with 328 projects/48,207 rooms, Germany with 266 projects/47,004 rooms and France with 161. projects/18,981 rooms. Next comes Portugal, with 125 projects/14,880 rooms, followed by Poland with 82 projects/11,693 rooms.
The European cities with the highest number of hotel projects in the pipeline, at the end of the quarter, are London with 85 projects/13,777 rooms, Düsseldorf with 47 projects/8,969 rooms, Paris with 41 projects/6,461 rooms, Istanbul with 33 projects/6,795 rooms, and Lisbon with 33 projects/3,773 rooms.
The franchise companies with the largest construction pipelines at the end of the first quarter are Accor, with 272 projects/37,320 rooms, and Marriott International, with 205 projects/32,087 rooms. Hilton Worldwide follows with 188 projects/27,790 rooms, then InterContinental Hotels Group (IHG) with 155 projects/21,219 rooms. These four companies represent 46% of the projects and 43% of the rooms in the total pipeline.
The main brands in the hotel construction pipeline of these four companies are the Ibis brands of Accor with 96 projects/11,615 rooms, the Hampton by Hilton brand of Hilton Worldwide with 74 projects/11,144 rooms, Holiday Inn Express of IHG with 62 projects/8,906 rooms, and Marriott International’s Marque Moxy with 48 projects/8,237 rooms.
During the first quarter of 2022, Europe opened 60 new hotels with 8,931 rooms. At present, and barring further escalation of the conflict, LE analysts expect 359 new hotel projects to open representing 53,930 rooms, for a total of 419 new hotel projects/62,861 rooms to open in 2022. Analysts of LE foresee 468 new projects. hotel projects, with 65,712 rooms, to open in 2023.
About Accommodation Econometrics (LE)
For nearly 25 years, Lodging Econometrics (LE) has been the industry’s leading provider of global hospitality intelligence and decision-maker contact information. LE creates tailored business development database programs for hotel franchise companies looking to accelerate their brand growth, hotel owners and management companies looking to expand their real estate portfolios, and service providers. the accommodation industry who want to increase their sales. To learn more about our business development programs, contact us: +1 603.431.8740 or [email protected]housingeconometrics.com.
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