Hotel Development Trends & Projections
Europe’s Hotel Construction Pipeline Reaches 1,736 Projects as LE Announces First-Ever 2028 New Hotel Openings Forecast
Lodging Econometrics (LE) has released its Q2 2026 Hotel Construction Pipeline Trend Report for Europe. According to LE analysts, the region’s total pipeline stands at 1,736 projects/255,976 rooms at the close of the second quarter, representing a 3% increase in both projects and rooms year-over-year (YOY).
As of the second quarter’s close, 45% of the hotel projects in Europe’s total pipeline are in the under construction stage, standing at 773 projects/116,172 rooms, up 4% by projects and 3% by rooms YOY. Another 332 projects/50,332 rooms are scheduled to start construction in the next 12 months, accounting for 19% of projects and 20% of rooms in the total pipeline. Projects in the early planning stage reached a record-high 631 projects/89,472 rooms, up 11% by projects and 13% by rooms YOY, now accounting for 36% of projects and 35% of rooms in the region’s total pipeline.
At Q2, the luxury chain scale reached a record-high 187 projects/21,930 rooms, up 9% by projects YOY. The upper upscale chain scale also reached a record-high 304 projects/50,181 rooms, up 11% by projects and 13% by rooms YOY. The upscale chain scale leads all segments with 400 projects/61,639 rooms, up 8% by both projects and rooms YOY. The upper midscale chain scale stands at 306 projects/43,622 rooms, and the midscale chain scale stands at 181 projects/25,633 rooms. Combined, the top two chain scales by project count, upscale and upper midscale, account for 706 projects/105,261 rooms, representing 41% of the projects and 41% of the rooms in Europe’s total construction pipeline, up 4% by projects and 3% by rooms YOY.
Further, 66 new construction projects/7,835 rooms broke ground during the second quarter, while new project announcements (NPAs) total 101 projects/12,169 rooms in Q2. Combined, hotel renovations and brand conversions total 640 projects/82,841 rooms.
In the first half of 2026, 112 new hotels/13,914 rooms have opened across Europe, with an additional 195 projects/25,884 rooms forecasted to open in the third and fourth quarters. For the year, LE forecasts 307 new hotels/39,798 rooms to open across Europe. Looking further ahead, LE forecasts 303 new hotel openings/42,729 rooms for 2027. For the first time, LE is now forecasting 2028 new hotel openings for Europe, projecting 304 new hotels/43,099 rooms to open that year.
Five Countries Account for 46% of the Projects and 43% of the rooms in Europe’s Hotel Pipeline
Countries in Europe with the greatest number of projects in the pipeline at Q2 are led by the United Kingdom with 263 projects/39,011 rooms. Following are Turkey with 156 projects/21,266 rooms, up 13% by projects and 6% by rooms YOY, Germany with 146 projects/24,821 rooms, France with 117 projects/11,938 rooms, up 6% by rooms YOY, and Portugal with 115 projects/13,915 rooms, up 4% by projects YOY. These five countries combined account for 46% of the projects and 43% of the rooms in the region’s total pipeline.
The cities with the largest pipelines in Europe at Q2 are London with 70 projects/12,912 rooms, Istanbul with 44 projects/6,857 rooms, up 8% by projects and 2% by rooms YOY, Lisbon with 40 projects/4,476 rooms, Tashkent, Uzbekistan, with 29 projects/4,631 rooms, up 4% by projects YOY, and Hamburg with 25 projects/4,789 rooms, up 4% by projects and 6% by rooms YOY.