Europe’s hotel construction pipeline continues to expand, with projects in the early planning stage reaching record highs at the close of the second quarter of 2025, according to Lodging Econometrics (LE).
Cliffside Hotel at Sunset at the Little Fistral Beach, Newquay, Cornwall, U.K. Photo by Vasile Jechiu/iStock.
LE analysts report the region’s total pipeline stands at 1,690 projects and 248,972 rooms as of June 30. Of these, 44 per cent—744 projects and 112,483 rooms—are under construction. Another 376 projects with 57,414 rooms are scheduled to break ground within the next 12 months, while early planning stage projects climb to a record 570 projects with 79,075 rooms, up 11 per cent by projects and 10 per cent by rooms year-over-year.
The luxury chain scale hits a record 169 projects and 21,550 rooms, while the upper-upscale category also reaches record levels with 283 projects and 45,376 rooms. The upscale chain scale holds 359 projects and 55,494 rooms, and the upper-midscale segment ends the quarter with 311 projects and 44,921 rooms. Upscale and upper-midscale properties together account for 40 per cent of both projects and rooms in the total pipeline.
Development activity remains strong in the second quarter, with construction starts rising 12 per cent year-over-year to 94 projects and 13,338 rooms. New project announcements total 121 projects and 17,982 rooms, a 15 per cent increase in project count and a 36 per cent increase in rooms compared with last year. Renovations and brand conversions total 668 projects and 85,099 rooms.
The United Kingdom leads Europe’s project count at 282 projects and 39,730 rooms, followed by Germany with 157 projects and 26,861 rooms. Turkey records its highest-ever pipeline with 138 projects and 19,984 rooms. France (118 projects, 11,242 rooms) and Portugal (111 projects, 13,987 rooms) round out the top five, which collectively represent 48 per cent of projects and 45 per cent of rooms in the region’s total pipeline.
London leads Europe’s cities with 79 projects and 14,276 rooms. Istanbul follows with 49 projects and 7,779 rooms, ahead of Lisbon (37 projects, 4,370 rooms), Tashkent (28 projects, 4,808 rooms) and Dublin (27 projects, 4,888 rooms).
In the first half of 2025, 119 new hotels with 15,381 rooms were open across Europe. LE forecasts another 220 hotels and 29,854 rooms to debut in the second half of the year, bringing the 2025 total to 339 hotels and 45,235 rooms. The extended forecast anticipates 345 new hotels with 48,448 rooms opening in 2026, followed by 358 hotels and 50,247 rooms in 2027.
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