In the Q2 2023 Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report the region currently has 1,715 projects/256,578 rooms in its construction pipeline at the quarter’s close. There are currently 776 projects/118,400 rooms under construction. Projects scheduled to start construction in the next 12 months stand at 404 projects/61,842 rooms, and those in the early planning stage stand at 535 projects/76,336 rooms.

The top countries in Europe’s construction pipeline at the close of the second quarter are the United Kingdom with 322 projects/45,181 rooms, Germany with 211 projects/34,981 rooms, France with 132 projects/14,869 rooms, Portugal with 127 projects/15,446 rooms, and Turkey with 107 projects/15,670 rooms. These leading countries, combined, are responsible for 52% of the projects and 49% of the rooms in Europe’s total pipeline. The United Kingdom, Germany, France, Portugal, and Turkey are expected to continue to lead Europe, with most hotels forecast to open through 2025.

The cities in Europe with the largest pipelines in Q2 are led by London, with 82 projects/14,767 rooms, and Istanbul, with record project counts of 42 projects/7,222 rooms. Lisbon, with 37 projects/4,262 rooms; Dublin, with 32 projects/6,173 rooms; and Dusseldorf, Germany, with 31 projects/5,669 rooms.

Franchise companies with the largest construction pipelines are led by Accor with 276 projects/36,909 rooms. Next is Hilton Worldwide with 202 projects/28,825 rooms, Marriott International with 178 projects/27,142 rooms, IHG Hotels & Resorts with 143 projects/19,108 rooms, and Radisson Hotel Group with 59 projects/11,452 rooms. These five global franchises account for 50% of the projects in Europe’s pipeline.

The leading brands in the region in Q2 are Accor’s Ibis brands, with 91 projects/10,773 rooms. Following the Ibis brands are Hilton’s Hampton by Hilton brands with 71 projects/10,345 rooms, IHG’s Holiday Inn Express with 45 projects/6,129 rooms, and Marriott’s Moxy brand with 38 projects/6,091 rooms.

In the first half of 2023, Europe opened 150 new hotels with 20,027 rooms and is forecast to open another 265 new hotels with 35,491 rooms by year’s end. The LE forecast for new hotel openings in the years ahead expects 381 new hotels/51,708 rooms to open in 2024, and, in 2025, 365 new hotels/56,094 rooms are forecast to open.