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Cancellations remain high
The number of new hotel rooms under construction throughout EMEA has fallen 11% in Q1, according to the latest report by Lodging Econometrics (LE).
LE said project cancellations and postponements "remain at high levels".
"The availability of financing is so restrictive and lodging operation declines are impacting so significantly that, of the 116 Cancellations/Postponements reported, 51 or 44% were already Under Construction and abruptly halted," LE said in its report.
Europe's first quarter pipeline fell in line with EMEA average, at 11% compared to a Q2 2008 peak, equivalent to 912 projects or 153,189 new rooms.
LE said more projects were listed as starting in the next 12 months than ‘Under Construction' as a lack of financing slows progress.
The Middle East pipeline suffered a 14% decline in projects and 13% drop in new rooms, while Africa's projects and room openings fell just 3% and 4% respectively.
LE said a lack of capital had caused a backlog of "stalled" projects across EMEA, with more projects stating in the ‘Construction Starts' phase and few moving on to ‘Under Construction'.
The forecast for new hotel openings in 2009 stands at 277 in Europe or 28,879 rooms, down 10% from 2008, LE said. Openings in the Middle East and Africa are expected to pick up speed each year until 2011.