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Europe’s hotel construction pipeline up 7% YOY

Europe’s hotel construction pipeline up 7% YOY

In this episode we speak to Anthony Hunt, partner and co-head of Corporate Real Estate at law firm Howard Kennedy. We discuss why 2026 may be seen as a pivotal year for boutique hotels, unpack the rise of global nomadism and how this is shaping demand and trends across hospitality, and how a strong team and clear, consistent messaging and offerings are key to securing investment.

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Europe’s hotel construction pipeline at the end of Q3 increased 7% by projects and 11% by rooms year-over-year (YOY), according to the latest Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE).

As a result, the European sector ended the quarter with 1,834 projects and 291,823 rooms. It revealed that much like other regions around the world, Europe’s hotel construction pipeline is experiencing slight delays to project timelines of approximately two to four months.

It found that rooms under construction stand at an “all-time high” of 151,471 rooms from 921 projects and are up 11% by projects and 15% by rooms YOY. Projects scheduled to start construction in the next 12 months are at 478 projects/75,166 rooms, down slightly YOY.

Projects in the early planning stage have 435 projects/65,186 rooms, up 13% and 18% respectively, YOY. During the third quarter of 2020, Europe opened 96 hotels/12,014 rooms, the most opened in Europe in a single quarter of 2020 thus far. Q3 also had a 38% increase in the total number of hotels that opened over Q2 ’20, a strong sign, certainly.

The United Kingdom leads the construction pipeline with 345 projects/52,065 rooms, and then Germany with 310 projects/55,930 rooms. France follows with 168 projects/20,646 rooms. Next is Portugal, at an all-time high, with 124 projects/14,430 rooms, and then Poland with 91 projects/14,282 rooms.

Accor Hotels leads franchise companies in Europe with the largest pipeline by projects, at 246 projects/34,483 rooms. It is followed by Marriott International with 215 projects/35,817 rooms. Hilton Worldwide is next with, an all-time high of, 214 projects/33,641 rooms. Hilton is followed by InterContinental Hotels Group (IHG) with 152 projects/24,438 rooms.

The leading brands for these four companies are Accor’s Ibis brands with 103 projects/13,389 rooms and then Mercure Hotels with 29 projects/3,463 rooms, a record high room count total, and Novotel with 26 projects/4,364 rooms.

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