Hotel Development Trends & Projections
Projects in the Early Planning Stage in Europe’s Hotel Construction Pipeline Continue to Expand at Q2 2025 Close
Lodging Econometrics (LE) has released its Q2 2025 Hotel Construction Pipeline Trend Report for Europe. According to LE analysts, the region’s total pipeline stands at 1,690 projects/248,972 rooms at the close of the second quarter.
As of the second quarter’s close, 44% of the hotel projects in Europe’s total pipeline are in the under construction stage, standing at 744 projects and 112,483 rooms. Another 376 projects with 57,414 rooms are scheduled to start construction in the next 12 months, while projects in the early planning stage reached a record-high 570 projects with 79,075 rooms, up 11% by projects and 10% by rooms year-over-year (YOY).
At Q2, the luxury chain scale reached a record-high of 169 projects/21,550 rooms, while the upper upscale chain scale also hit record-high totals with 283 projects/45,376 rooms. The upscale chain scale stands at 359 projects/55,494 rooms, while the upper midscale chain scale closed the second quarter with 311 projects/44,921 rooms. The top two chain scales by project count, upscale and upper midscale, account for 40% of the projects and 40% of the rooms in the region’s total construction pipeline.
Development pipeline activity remained robust in the second quarter, with construction starts totaling 94 projects/13,338 rooms, a 12% increase in projects YOY. New project announcements showed strong growth with 121 projects/17,982 rooms, representing a 15% increase in projects and 36% increase in rooms YOY. Combined hotel renovations and brand conversions in Europe at Q2 stand at 668 projects/85,099 rooms.
During the first half of 2025, 119 new hotels/15,381 rooms opened throughout Europe, with an additional 220 new hotels/29,854 rooms forecast to open in Q3-Q4. LE analysts forecast a total of 339 new hotels/45,235 rooms to open by year-end 2025. Looking ahead to the newly announced extended forecast, LE anticipates 345 new hotels/48,448 rooms to open in 2026, followed by 358 new hotels/50,247 rooms in 2027.
London, Istanbul, and Lisbon have the Largest Number of Pipeline Projects at Q2 ‘25
Countries in Europe with the greatest number of projects in the pipeline at Q2 are led by the United Kingdom with 282 projects/39,730 rooms. Following are Germany with 157 projects/26,861 rooms, Turkey with a record-high 138 projects/19,984 rooms, France with 118 projects/11,242 rooms, and Portugal with 111 projects/13,987 rooms. These five countries account for 48% of the projects and 45% of the rooms in the region’s total pipeline at Q2.
European cities with the largest pipelines by project count at the close of the second quarter are London with 79 projects/14,276 rooms, Istanbul with 49 projects/7,779 rooms, Lisbon with 37 projects/4,370 rooms, Tashkent with 28 projects/4,808 rooms, and Dublin with 27 projects/4,888 rooms.