Hotel developers are planning more new projects in Europe as confidence grows about travel demand across the continent during the next few years.
The latest data from industry analyst Lodging Econometrics found that new project announcements experienced a “healthy increase” in the first quarter of 2023 when plans for 203 new hotels were unveiled, which would add nearly 27,000 rooms if they all go ahead.
Lodging Econometrics noted that hotel construction has also been rising in Europe so far this year, with work starting on 126 hotels offering a total of 17,000 rooms in Q1, which was an increase on the previous four quarters.
“Travel activity to popular European tourist destinations was steady in the first quarter. Lodging demand and increased occupancy can be expected to continue as the region gets ready to host several upcoming major events,” added the company in its regional update.
“Demand has motivated developers to move forward with plans as evidenced by the rise in projects in early planning and new project announcements.”
The latest forecast shows that 452 new hotels are due to open in Europe this year, which will add a total of 62,500 rooms. While another 409 properties (56,600 rooms) are expected to make their debut in 2024.
The UK - and London in particular - continue to see the highest number of new hotel projects in Europe. The UK has 340 hotels (47,500 rooms) in the development pipeline, followed by Germany (238 hotels) and France (139 properties).
London has 90 projects in various stages of development which could add more than 15,000 rooms to the city’s hotel sector. Dusseldorf is second with 38 hotels, followed by Lisbon (35 properties) and Dublin (31 hotels).
France-based Accor is the most active of the major global hotel companies in Europe with 277 properties planned across its brands, including 94 Ibis budget properties. Other fast-expanding brands in Europe include Hampton by Hilton (73 properties), IHG’s Holiday Inn Express (52 hotels) and Marriott’s Moxy (41 projects).