The United Kingdom is at the forefront of the European countries with the highest number of projects in the construction pipeline at the close of Q4. These are the stats:
- United Kingdom: 295 projects/43,332 rooms,
- Germany: 257 projects/43,952 rooms,
- France: 152 projects/17,267 rooms,
- Portugal: 130 projects/15,353 rooms,
- Turkey: 92 projects and 14,521 rooms, prior to the earthquake.
In the year-end 2022, Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that at the close of the fourth quarter, Europe’s total construction pipeline stands at 1,711 projects/260,911 rooms.
As of the end of Q4, the number of projects in various stages of development is as follows: 784 projects/123,377 rooms are presently under construction, 403 projects/60,724 rooms are set to commence construction within the next 12 months, and a record-high number of 524 projects in early planning stages, accounting for 76,810 rooms.
Despite the sluggish economic growth witnessed in the region during 2022, Europe still reigns as the most sought-after tourist destination globally, boasting six of the top ten international tourist destinations. As travel activity is predicted to further recover in 2023, and hotel operating performance improves, investors, owners, and franchise companies will remain committed to their development initiatives in the region.
The cities with the largest pipelines are London, Dusseldorf, Lisbon and Paris. Istanbul was doing great prior to the earthquake with 42 projects and 7997 rooms. The aftermath of the deadly earthquake remains to be seen.
When it comes to hotel companies and the number of projects they are involved in, Accor leads in Europe followed by Hilton Worldwide, Marriott International, InterContinental Hotels Group (IHG) and Radisson Hotel Group. Half of the projects and 48% of the rooms in the entire construction pipeline of the region are attributed to these five companies.