UK, Germany, Turkey, France, Portugal, Spain And Uzbekistan Lead Europe’s Hotel Construction Boom Driving Unprecedented Growth Across Key Markets

Thursday, May 15, 2025

UK, Germany, Turkey, France, Portugal, Spain and Uzbekistan are driving an unprecedented surge in Europe’s hotel construction pipeline, collectively accounting for nearly half of all projects and rooms planned across the continent. This dynamic growth reflects strong investor confidence and a booming hospitality market, with major urban and tourist hubs seeing record-breaking developments and renovations. As these nations lead the charge, Europe’s hospitality landscape is set for a transformative expansion that promises to redefine travel and accommodation experiences across the region.

As of the end of the first quarter of 2025, Europe’s hotel development pipeline continues to demonstrate strong momentum, featuring 1,683 projects totaling 247,472 rooms, according to the latest Lodging Econometrics (LE) report. Almost half of these developments—46%—are already under construction, comprising 766 projects with 115,227 rooms moving steadily toward completion. Furthermore, 386 projects with 57,992 rooms are scheduled to commence construction within the upcoming year, while an additional 531 projects, accounting for 74,253 rooms, remain in the initial planning stages.

Construction activity during Q1 2025 showed encouraging growth, with 90 new projects comprising 11,184 rooms commencing, marking a 14% increase in project count year-over-year. Alongside this, new project announcements totaled 94, adding 13,576 rooms to the pipeline, highlighting ongoing investor confidence and sustained momentum in the European hospitality market.

Renovation initiatives and brand transformation projects are driving substantial growth in the sector, with 718 active undertakings encompassing a total of 93,305 rooms. This segment experienced a notable surge, recording a 32% increase in project numbers and a 26% increase in rooms compared to the same period last year. These efforts reflect a broader industry trend focusing on revitalizing existing assets to meet evolving guest expectations and brand standards.

Luxury hotel developments continue to break records, with 132 projects totaling 17,124 rooms active at Q1’s end—the highest ever recorded. Likewise, the upper upscale category reached a new peak with 281 projects totaling 45,091 rooms underway. The upscale segment continues to hold a dominant position with 358 projects comprising 55,297 rooms, while the upper midscale tier accounts for 325 projects featuring 47,738 rooms. Together, the upscale and upper midscale categories dominate Europe’s development landscape, accounting for 41% of all projects and 42% of the total rooms planned.

In terms of location, the United Kingdom tops the continent with a pipeline comprising 288 projects and 41,338 rooms. Germany follows with 153 projects and 25,971 rooms, while Turkey records a new high with 133 projects comprising 19,350 rooms. France and Portugal round out the top five, with 119 projects/12,078 rooms and 115 projects/14,199 rooms respectively. Together, these five countries represent almost half of Europe’s entire hotel development pipeline, contributing 48% of the projects and 46% of the total rooms planned. Spain also reached a milestone in Q1 2025 with a record 92 projects and 13,509 rooms underway.

Looking at cities, London maintains its position as Europe’s top hotel development hotspot with 81 projects totaling 15,459 rooms. Istanbul follows with 49 projects and 7,743 rooms, then Lisbon with 36 projects/4,230 rooms, Dublin with 26 projects/4,696 rooms, and Tashkent, Uzbekistan, with 25 projects/4,261 rooms. Several cities experienced record-setting pipeline growth during Q1: Edinburgh reached a new peak with 18 projects adding 3,028 rooms, and Madrid achieved a record 17 projects totaling 2,410 rooms.

The first quarter also saw the opening of 41 new hotels adding 5,450 rooms across Europe. Looking ahead, the forecast remains optimistic, with 314 additional hotels and 42,099 rooms expected to open in the remainder of 2025. Overall, Lodging Econometrics anticipates a total of 355 new hotels comprising 47,549 rooms by year-end. The momentum continues into 2026, with 371 new hotels and 50,255 rooms projected to launch, signaling sustained growth and investment in Europe’s hospitality sector.

This active pipeline underscores Europe’s enduring appeal as a global travel destination and its resilience amid shifting market dynamics. The expansion across luxury, upscale, and midscale segments reflects diverse traveler preferences and growing demand for varied accommodation experiences. Strategic site selection in major cities, transport hubs, and tourist hotspots further supports the region’s capacity to attract both leisure and business travelers.

As European markets continue to recover and evolve, developers and investors remain confident in the region’s potential. Renovations and conversions complement new builds, enhancing existing assets to meet modern standards and capitalize on brand loyalty. This holistic approach ensures that the hospitality industry not only grows in volume but also improves in quality, driving greater guest satisfaction and long-term profitability.

UK, Germany, Turkey, France, Portugal, Spain and Uzbekistan are spearheading Europe’s booming hotel construction market, driving nearly half of all projects and reshaping the hospitality landscape.

With strong growth trends and record development numbers, Europe’s hotel construction pipeline presents promising opportunities for stakeholders across the sector. From investors seeking stable returns to travelers enjoying enhanced amenities and services, the outlook remains bright as the continent embraces a new era of hospitality innovation and expansion.