Development

Record high for Europe’s hotel construction pipeline despite COVID

Europe’s hotel construction pipeline increased 2% by projects and 3% by rooms year-over-year in 2020, ending the year with 1,905 projects and 307,093 rooms, according to the latest Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics.

This is a record high project and room count for the region. According to Lodging Econometrics, “Europe’s construction pipeline has remained robust as hotel developers have purposely delayed their opening dates to await improved operating conditions”.

Leading the construction pipeline is the UK with 372 projects/55,505 rooms, followed closely by Germany (300 projects/55,346 rooms) and France (180 projects/21,908 rooms). Portugal shows an all-time high of 134 projects/15,985 rooms. Looking at cities, London leads with 99 projects/17,678 rooms, followed by Dusseldorf (57 projects/11,046 rooms), Paris (45 projects/6,913 rooms), Lisbon (39 projects/4,440 rooms) and Istanbul (33 projects/6,291 rooms).

45% of the pipeline is to be branded by four companies, with Accor holding the largest pipeline with 273 projects  mostly with its Ibis brands (107 projects), then Novotel (31 projects, an all-time high for the brand) and Mercure Hotels (29 projects), as well as 20 projects under its lifestyle brand Tribe, which is entering the European market after its first opening in Perth, Australia. Accor is followed in the project pipeline with Marriott International, with 227 projects mostly from brands Moxy (68 projects), Courtyard by Marriott (30 projects), and Autograph Collection (23 projects). Hilton follows with 212 projects represented mostly by Hampton by Hilton with 86 projects, Hilton Garden Inn with 44 projects, and DoubleTree by Hilton with 31 projects. IHG Hotels & Resorts has 148 projects in the pipeline under brands Holiday Inn Express (59 projects), Holiday Inn (25 projects) and Hotel Indigo (16 projects).