Berlin and More European Cities in New List as Dalata Unveils Its Massive Hotel Expansion

Dalata is accelerating its European hotel expansion, with Berlin, Madrid, Edinburgh, and London among the key cities in its growing development pipeline. The strategy reflects the continued strength of major European city tourism, where demand from business travelers, leisure visitors, events, and international tourists is creating opportunities for new hotel capacity.

The expansion comes as the hotel group moves deeper into continental Europe while continuing to strengthen its presence in major UK markets. Dalata’s development pipeline has included more than 1,900 rooms across multiple projects, highlighting the scale of its ambitions as it targets high-demand urban locations.

Berlin Becomes a Major European Focus

One of the most important projects is the Clayton Hotel Tiergarten in Berlin, which is expected to open in the second half of 2026 following an extensive refurbishment of the former Novotel Berlin Am Tiergarten. The four-star property will feature 274 rooms, along with a restaurant, bar, meeting and events facilities, sauna, and gym.

Its location near the Brandenburg Gate, Kurfürstendamm, Berlin Zoological Garden, and major transport connections gives the hotel access to both leisure and business demand. The property is also being upgraded with energy-efficient systems and is targeting BREEAM Very Good certification.

Madrid and Other European Cities Join the Pipeline

Berlin is not the only continental European market receiving attention. Dalata has also been developing its presence in Madrid, with the Clayton Hotel Valdebebas planned as a 243-room property and targeted for opening in 2029.

The wider pipeline demonstrates a clear strategy of targeting major European cities where strong tourism, business travel, events, and international connectivity can provide year-round hotel demand. This approach gives Dalata opportunities to reduce reliance on traditional UK and Irish markets while building a broader European footprint.

London Expansion Continues

Despite its continental ambitions, London remains a major priority. Dalata announced its seventh London hotel, the four-star Maldron Kensington, planned for Hammersmith Road near the redeveloped Olympia London.

The property is expected to have around 370 rooms, alongside a restaurant, bar, gym, and business centre, with an expected opening in 2029 subject to planning approval. Once completed, Dalata’s London portfolio will exceed 1,400 rooms across seven hotels.

Berlin’s Hotel Market Is Expanding Rapidly

Dalata’s Berlin investment comes as the German capital experiences significant hotel development activity. Berlin currently has 56 hotel projects in its pipeline, making it one of the most active hotel markets in the wider DACH region.

Several new properties and major refurbishments are planned or underway in 2026, including projects from international hotel groups, lifestyle brands, and airport-focused developments. The trend reflects confidence in Berlin’s long-term ability to attract both international tourists and business travelers.

A Bigger European Hospitality Strategy

Dalata’s expansion is part of a broader shift toward major, well-connected European cities where hotels can benefit from diverse sources of demand. Business events, conferences, cultural attractions, sporting events, leisure tourism, and international air connectivity can help properties maintain occupancy across different seasons.

The strategy also comes as Dalata operates under new ownership following its acquisition by Pandox and Eiendomsspar, with Scandic Hotels Group assuming operational responsibility for the portfolio.

Key Takeaways

• Berlin is becoming a major focus of Dalata’s European expansion, with the 274-room Clayton Hotel Tiergarten scheduled to open in the second half of 2026.
• Dalata’s development pipeline includes more than 1,900 rooms, spanning major markets across the UK and continental Europe.
• Madrid is another important growth market, with a 243-room Clayton Hotel Valdebebas planned for 2029.
• London remains a core strategic market, with Dalata’s seventh London hotel planned for Kensington.
• Berlin currently has 56 hotel projects in its development pipeline, reinforcing the city’s position as one of Europe’s most active hotel markets.
• The expansion highlights growing investor confidence in major European cities with strong tourism, business travel, events, and international connectivity.

Bottom Line

Dalata’s expanding hotel pipeline highlights the growing competition for Europe’s strongest tourism and business markets. With major projects in Berlin, Madrid, London, Edinburgh, and other strategic cities, the group is positioning itself for long-term growth while taking advantage of strong demand for high-quality accommodation. Berlin’s 2026 hotel development boom is particularly significant, showing how international hotel investment is responding to the German capital’s continuing appeal as a major European tourism and business destination.