European hotels ignore the economic slowdown and continue with their projects

A tourist takes a photo in front of the Congress of Deputies, on June 3, 2023, in Madrid (Spain).

The first hotel franchise Global companies are continuing major construction projects across Europe despite the economic slowdown, according to the European Hotel Construction Project Trends Report by Lodging Econometrics (LE). which ensures that growth is particularly important in high-end hotels.

The portfolio of hotel construction projects in Europe shows a slight increase compared to last year. Therefore, according to the trend report of the hotel construction portfolio in Europe prepared by the consulting firm Lodging Econometrics, the total hotel construction portfolio in Europe so far totals 1,673 projects—about 249,264 rooms—1% more than last year.

The ‘luxury’ hotel projects are those registered with greater growth compared to last year, with an increase of almost 2%. They closed the quarter with a total of 139 projects, or 18,515 rooms.

Greater growth even in scale’superior high range’, which increased their projects by 3% last year, with a total of 284 projects (46,717 rooms). In the case of projects ‘high-end’, it increased 3% of the interannual rate, which now represents 26% of the total projects under construction, with a total of 439 projects (71,178 rooms).

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The hotel projects that grew the most last year were in the economic range’, which grew 5% year-on-year and reached a total of 157 projects—20,042 rooms—at the end of the quarter.

According to data from Lodging Econometrics, at the end of the third quarter of 2023, there will be a total of 759 projects—114,842 rooms—built across Europe. The projects whose construction is scheduled to begin in the next 12 months amount to 411 projects (63,154 rooms), while those in initial planning amount to 503 projects (71,268 rooms).

In the third quarter of the year, brand changes in Europe increased to 15% of the achievement of 374 projects—49,893 rooms. Those that have started construction grew by 17%, with 91 hotels having 11,436 rooms, and those announcements of new projects also increased in the third quarter by 20% year-on-year to close the quarter with 107 projects having 13,536 rooms.

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The end of the year drives the openings

In the third quarter, a total of 241 new hotels were opened in Europe, representing about 32,191 rooms. The prognosis of LE for the opening of new hotels is expected to be 99 new hotels—13,519 rooms—and more at the end of the year.

Analysts await the openings of new hotels, which will continue to proliferate in the coming years with a total of 356 hotels—48,888 beds—scheduled to open in 2024 and an even greater increase of 406 hotels—56,127 rooms—scheduled to open in 2025.

The United Kingdom topped the ranking

By country, the United Kingdom continued to have the largest number of portfolio projects in the European region in the third quarter, with a total of 322 projects (44,259 rooms). It follows Germany’s 201 projects—32,889 rooms; Portugal’s 125 projects—15,055 rooms; and France’s 121 projects—13,613 rooms.

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The next country on the list is Turkey, which arrived at an all-time high in 114 projects—16,907 rooms—and increased the number of projects by 33% at the interannual rate.

The European cities with the largest portfolio of hotel construction projects at the end of the quarter were led by London (United Kingdom), with 79 projects—14,078 rooms—and Istanbul (Turkey), with a record of 48 projects, representing a total of 7,936 rooms.

They followed him in Lisbon (Portugal), with 37 projects and 4,070 rooms; Dublin (Ireland), with 34 projects and a record 6,492 rooms; and Dusseldorf (Germany), with 30 projects and 5,465 rooms.