Major global hotel companies are moving forward with their expansion plans in Europe despite economic worries around the continent.
Data from industry analyst Lodging Econometrics (LE) reveals that there were just over 1,700 hotels in the construction “pipeline” across Europe at the end of 2022. These projects would add a total of 261,000 rooms to the continent’s stock.
These figures include 784 projects currently being built with another 403 set to start construction this year.
“Despite slowed economic growth throughout the region in 2022, Europe remains the most popular tourist destination in the world, with six of the top ten most visited international tourist destinations located in the region,” said LE in its analysis of the market.
“Travel activity in Europe is expected to continue to rebound in 2023 and as hotel operating performance increases, owners, investors and franchise companies will continue to focus on development efforts in the region.”
France-based Accor has the most new European properties in the pipeline with 286 hotels, followed by Hilton with 195, Marriott International (185) and InterContinental Hotels Group (153).
In terms of brands, Accor’s Ibis budget chain leads the way with 99 projects in Europe, followed by Hampton by Hilton (74). IHG’s Holiday Inn and Holiday Inn Express also account for a combined 77 projects. Moxy is the Marriott brand with the highest number of new hotels at 41.
The UK has the most new projects in Europe with 295 hotels, ahead of Germany (257 properties), France (152) and Portugal (130).
London continues to be the centre of European hotel development with 75 projects – well ahead of other western European cities such as Paris (31 hotels), Dusseldorf (42) and Lisbon (35).
“New project announcements have increased substantially over the last three quarters, suggesting there will be more new hotel openings in the region, compared to 2022, in the years ahead,” added LE.
The company is forecasting that 424 new hotels will open in Europe this year, which will add more than 61,000 rooms. This number is then expected to dip slightly to 396 hotels and 55,000 rooms in 2024.