The world’s hospitality sector is experiencing a period of remarkable expansion, with new hotel projects surging to record figures. Recent analysis by Lodging Econometrics (LE) reveals that nearly 16,000 hotel ventures are currently in the developmental phase, poised to introduce approximately 2.5 million rooms worldwide.

A Global Perspective:

Leading this wave of growth is the United States, which accounts for roughly 40% of all global hotel developments, translating to just under 6,400 individual projects. China follows as a substantial contributor, representing 24% of the global pipeline with around 3,800 new properties. Notably, India is also seeing substantial growth, with a 35% increase in projects over the past year, bringing their total to nearly 700 developments. Completing the top five global contributors are Canada, with 333 projects, and Saudi Arabia, with 316 properties.

European Expansion:

Europe is participating in this global surge, accounting for approximately 10% of the new properties and rooms. At the close of 2024, the continent boasted 1,661 projects, set to add 244,464 rooms. The United Kingdom leads European development with 286 projects, promising over 40,000 new rooms. Germany follows with 161 hotels, with Turkey, France, and Portugal also contributing significantly to the European pipeline.

City Hotspots:

Within Europe, specific cities are emerging as key development hubs. London maintains its position as the leading city for planned new hotels, with nearly 80 projects in the pipeline. Istanbul is a close second with just under 50 hotels, followed by Lisbon with 35 properties, and Dublin with 24 projects.

Yearly Growth and Projections:

In 2024, Europe saw the opening of 289 hotels, collectively adding nearly 39,000 rooms. Looking ahead, LE anticipates an 18% increase in European openings for the current year, with 342 new properties expected to launch, introducing an estimated 48,500 additional rooms. This projected growth underscores the robust health of the European hospitality market.

Industry Insights:

The data presented by Lodging Econometrics highlights the dynamic nature of the global hotel industry. The record-breaking number of projects in the pipeline reflects a strong confidence in future travel demand. This expansion is not only creating new accommodation options but also stimulating economic activity and job creation in various regions.