INTERNATIONAL
REPORT — The European hotel sector demonstrated resilience throughout 2024,
with the fourth quarter showing momentum in new developments, according to the
latest data from Lodging Econometrics.
The data
shows Europe’s total construction pipeline reached 1,661 projects and 244,464
rooms through the end of Q4 2024. New project announcements also hit a yearly
high in Q4, with 146 projects and 18,416 rooms entering the pipeline. This
growth was distributed across 25 European cities that announced two or more new
projects during the quarter. London led this expansion, followed by Istanbul;
Timisoara, Romania; Bucharest, Romania and Izmir, Turkey.
Construction
activity also increased in the fourth quarter, with 84 projects and 10,523
rooms breaking ground. While Dublin, Ireland; Lisbon, Portugal and London saw
the highest concentration of construction starts, development activity was
widespread, with 19 cities across Europe beginning construction on two or more
new hotel projects during the quarter.
“The
European hotel market continues to demonstrate exceptional vitality despite
global economic uncertainties,” said Bruce Ford, senior vice president and
director of global business development for Lodging Econometrics. “The strong
pipeline figures we’re seeing, particularly the surge in new project
announcements during Q4, reflect ongoing investor confidence in the long-term
prospects of Europe’s tourism and business travel sectors.”
There were
289 newly opened hotels and 38,681 rooms in Europe in 2024, with London leading
markets with 18 projects and 2,460 rooms, followed by Istanbul (10 projects and
1,453 rooms). Dublin, Ireland and Tbilisi, Georgia, added 5 hotels
(contributing 914 and 596 rooms, respectively), while Bristol, U.K.; Edinburgh,
Scotland; Lisbon and Manchester, U.K. each had four new properties open.
Europe’s
robust construction pipeline suggests continued expansion in 2025, positioning
the region for even more growth.