Planned hotel construction in Europe increased by 23 percent in the second quarter (Q2) of 2019 and by 9 percent globally, according to the latest report released by sector consultants Lodging Econometrics (LE).
More specifically, 1,704 projects (a 23 percent rise) with 260,111 rooms (a 19 percent increase), respectively year-over-year are in the pipeline in Europe, and 14,051 projects with 2,327,923 rooms, a 9 percent and 8 percent rise, respectively in 176 countries worldwide.
According to LE analysts, there are currently 819 projects/128,284 rooms under construction in Europe, with 496 projects/76,633 rooms planned to enter construction phase in the next 12 months.
The report attributes the increased activity to low-interest rates and friendly lending terms. Analysts are expecting the pipeline to continue to grow at a healthy pace in the immediate future.
In the first half of 2019, Europe opened 213 new hotels with 28,167 rooms and is forecast to open another 192 new hotels with 24,689 rooms by year end.
A total of 432 new hotels/60,694 rooms are scheduled to open in 2020, with 484/74,220 rooms slated for 2021.
According to the report, if the 2019-2021 projects move ahead as scheduled, Europe’s hotel capacity – currently at 2,885,630 rooms – will grow by 7 percent.
In the lead in Europe in terms of hotel openings is Germany, with 320 projects/57,689 rooms, followed by the UK and 280 projects/40,970, and France and Portugal – 184 projects/22,140 rooms and 119 projects/11,733 rooms, respectively.
In terms of European city activity, London has 78 projects/13,632 rooms in the pipeline, Paris follows with 54 projects/7,946 rooms, and Dusseldorf with 52 projects/10,178 rooms.
Franchise companies with the largest construction pipelines are AccorHotels with 261 projects/35,183 rooms, followed by Marriott International and 211 projects/34,432 rooms, and Hilton Worldwide follows with 174 projects/26,887 rooms.
In terms of brands, AccorHotel’s Ibis brands account for 134 projects/16,785 rooms, Mercure Hotel and Novotel for 30 projects/3,202 rooms and 28 projects/4,881 rooms, respectively; Marriott International’s Moxy with 66 projects/11,855 rooms, Courtyard with 33 projects/5,796 rooms, and Residence Inn with 17 projects/1,610 rooms; and Hilton Worldwide’s Hampton by Hilton with 69 projects/ 10,703 rooms, Garden Inn with 42 projects/6,376 rooms, and DoubleTree with 26 projects/ 3,455 rooms.
Globally, two countries account for 61 percent of all projects: namely the US, which accounts for 40 percent of projects in the total global construction pipeline at 5,653 projects/693,207 rooms, and China with 2,991 projects/592,884 rooms and a 21 percent share of the market.