Major global hotel franchises continue construction projects across Europe

Major global hotel franchises continue construction projects across Europe

Major global hotel franchises are thriving with major construction projects across Europe despite the economic slowdown, according to the European Hotel Construction Project Trends Report by Lodging Econometrics (LE), which states that the growth is particularly significant in high-end hotels.

The portfolio of hotel construction projects in Europe showed 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 currently amounts to a total of 1,673 projects/249,264 rooms, 1% more than last year. .

‘Luxury’ hotel projects were those that recorded the greatest growth compared to last year, with an increase of almost 2%, closing the quarter with a total of 139 projects / 18,515 room. The growth is even greater in the ‘upper high-end’ scale, which increased its projects by 3% last year, with a total of 284 projects / 46,717 rooms.

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In the case of ‘high-end’ projects, it increased by 3% per year, which now represents 26% of the total projects under construction, with a total of 439 projects/71,178 rooms .

The hotel projects that grew the most last year were those in the ‘economic’ range, which grew by 5% annually to reach 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.

Projects whose construction is scheduled to begin in the next 12 months total 411 projects/63,154 rooms, while projects in initial planning total 503 projects/71,268 rooms. In the third quarter of the year, brand renewals in Europe increased by 15% to reach 374 projects / 49,893 rooms. Those already under construction grew by 17%, with 91 hotels/11,436 rooms, and announcements of new projects also increased in the third quarter by 20% year-on-year to close the quarter of 107 projects/13,536 rooms.

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Openings increased at the end of the year

In the third quarter, a total of 241 new hotels were opened in Europe, representing about 32,191 rooms. LE’s forecast for new hotel openings anticipates the opening of 99 new hotels/13,519 additional rooms by the end of the year. Analysts expect new hotel openings to continue to increase in the coming years, with a total of 356 hotels / 48,888 rooms scheduled to open by 2024 and rising further. of 406 hotels / 56,127 rooms planned to open in 2025.

United Kingdom at the head of Europe.

By country, the United Kingdom continued to have the highest number of pipeline projects in the European region in the third quarter, with a total of 322 projects / 44,259 rooms.

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Germany follows, with 201 projects/32,889 rooms; Portugal, with 125 projects/15,055 rooms; and France, with 121 projects/13,613 rooms. The next country on the list is Turkey, which reached a historical high of 114 projects / 16,907 rooms and increased the number of projects by 33% year-on-year.

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 48 projects, representing a total of 7,936 rooms.

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