According to the latest European hotel construction pipeline trends report from Lodging Econometrics (LE), analysts report that at the end of the third quarter of 2021, the hotel construction pipeline in Europe stands at 1,814 projects and 295 719 rooms; and remains largely unchanged from year to year (YOY).
Much like other regions of the world, the European hospitality industry continues to face the challenges created by the COVID-19 pandemic. Nonetheless, travel activity has rebounded in recent months, a positive and welcome step towards the industry’s recovery. Successful vaccination programs across the region have played a key role in easing entry requirements and increasing the attractiveness of international travel to European countries. Containment efforts will continue to play a critical role in the region’s recovery as more countries reopen their borders and projects under planning continue to move through the pipeline until the opening.
Currently there are 870 projects / 144,463 rooms under construction, down 6% by projects and 5% by YOY rooms. Projects slated for construction over the next 12 months are 444 projects / 71,655 rooms, down 7% per project and 5% per room year-on-year. Projects under planning hit cyclical highs in the third quarter, standing at 500 projects / 79,601, up 15% and 22% year-on-year, respectively.
The main countries in the construction pipeline in Europe are the United Kingdom with 335 projects / 52,086 rooms, Germany with 271 projects / 48,883 rooms, France with 156 projects / 18,680 rooms, Portugal with 120 projects / 14 521 rooms and Poland with 86 projects / 12,628 rooms.
The European cities with the largest pipelines are London with 86 projects / 15,480 rooms, Düsseldorf, Germany, with 53 projects / 10,368 rooms and Paris with 38 projects / 6,238 rooms, followed by Lisbon, Portugal, with 35 projects / 4 120 rooms and Istanbul with a cyclical peak of 31 projects representing 6,419 rooms.
Accor is the leader of franchisees in Europe with the largest pipeline by projects, with 271 projects / 40,192 rooms. Marriott International follows with 207 projects / 33,932 rooms. Next come Hilton with 203 projects / 31,650 rooms, then InterContinental Hotels Group (IHG) with 145 projects / 22,012 rooms. These four companies represent 46% of the total hotel construction pipeline in Europe.
The flagship brands of these large companies are the Ibis brands of Accor with 94 projects / 11,153 rooms and its Novotel brand, which has reached a cyclical peak, with 32 projects / 5,231 rooms. The main Marriott International brands are Moxy with 48 projects / 8,294 rooms and Courtyard by Marriott with 24 projects / 5,175 rooms. Hilton’s Hampton by Hilton brand has 78 projects / 12,035 rooms, followed by its Hilton Garden Inn brand with 43 projects / 7,382 rooms. Holiday Inn Express from IHG ends the quarter with 56 projects / 8,818 rooms and Holiday Inn with 21 projects / 4,735 rooms.
During the third quarter, Europe opened 122 hotels / 18,431 rooms, bringing the total number of new hotels opened over the period to 339 hotels, representing 49,880 rooms. LE experts predict a further 116 projects with 15,334 rooms to open in the fourth quarter. LE’s forecast for new hotel openings foresees the opening of 460 new hotels, representing 70,014 rooms, in 2022 and 492 new hotels / 76,145 rooms in 2023.