The European hotel industry is experiencing a boom, with hundreds of new hotels slated to open in the coming years, according to Lodging Econometrics (LE), an industry specialist. This surge in development reflects the continent’s growing appeal as a tourist destination and the increasing demand for accommodation.

A Robust Pipeline Fuels Expansion

LE reports that Europe’s hotel construction pipeline stood at over 1,700 projects at the end of 2023, representing more than 250,000 potential new rooms. This significant figure indicates sustained growth in the sector, with new properties expected to cater to the influx of visitors.

Building on Momentum

The past year witnessed the opening of 316 new hotels across Europe, adding nearly 42,000 rooms to the continent’s accommodation options. This momentum is projected to continue, with forecasts predicting an increase to 350 new properties and 48,600 rooms in 2024, further rising to 383 new hotels and 52,000 rooms in 2025.

Upscale Trends Dominate

LE’s analysis reveals that “upper upscale, upscale, and upper midscale” properties are currently driving the growth in Europe’s hotel construction pipeline. This trend suggests a focus on catering to travellers seeking high-quality accommodation experiences.

The UK and London: Leaders in Development

The United Kingdom remains at the forefront of European hotel development, with 322 projects in the pipeline, including 77 concentrated in London alone. These developments are expected to contribute over 44,000 new rooms to the UK’s hotel stock, with London adding an impressive 13,700 rooms to its capacity.

Following the Leaders

Germany trails closely behind the UK with 195 hotel projects and 31,800 rooms in the pipeline. Other notable contenders include France (127 hotels/14,200 rooms), Turkey (118 hotels/17,800 rooms), and Portugal (114 hotels/13,900 rooms).

Beyond National Trends: Key City Hubs

Following London, Istanbul boasts the second-largest pipeline in Europe with 53 hotels and 8,900 rooms planned. Lisbon, Dublin, and Dusseldorf round out the top destinations with significant upcoming hotel developments.