European hotel development continues to gather pace

Europe will add more than 43,000 hotel rooms during 2024 as an estimated 327 properties are set to open this year across the continent, according to the latest figures from industry analyst Lodging Econometrics (LE).

LE said that 220 new hotels with a total of 29,600 rooms opened in Europe during the first nine months of 2024, with another 107 hotels and nearly 14,000 rooms due to be unveiled in the final quarter of the year. The updated figures are similar to those in LE’s previous update published during the summer.

Looking further ahead, LE is projecting that around 350 new hotels will open in Europe next year, which would add 51,500 rooms, followed by another 426 properties and 57,350 rooms in 2026.

The company noted that “nearly half” of Europe’s total pipeline of 1,645 hotel projects were already under construction by the end of September.

LE said that hotel development continues to be led by “upscale” properties, followed by those in the “upper midscale” and “upper upscale” categories. It added that there was “robust” conversion activity in Europe where properties switch between brands.

The growth of new hotels is being dominated by the UK with nearly 300 projects in the pipeline, including 75 properties in London and 23 in Manchester. Germany has the second highest number at 172 projects, followed by Turkey (123 hotels), Portugal (114) and France (105).