Travel activity in Europe has been rebounding over recent months and is expected to continue through the end of the year. Business-related travel is on the rise in the region and hotel bookings at resort destinations and major European cities are comparable to those seen in 2019. Reflective of a strong recovery and the growth in travel and hospitality demand, owners and investors have a positive outlook for the industry moving forward.

Hotel conversions in the region stand at an all-time high of 324 hotels/46,977 rooms, a 51% and 61% year-over-year (YOY) increase respectively, and the highest counts ever recorded by LE. Hotel renovations in Europe are also on the rise with 150 hotels/22,594 rooms at Q3.

Europe’s leading countries with the most projects in the construction pipeline are the U.K. with 298 projects/45,173 rooms; Germany with 250 projects/43,523 rooms; France with 148 projects/16,611 rooms; Portugal with 126 projects/15,185 rooms; and Turkey with record highs of 86 projects/13,532 rooms.

The European cities with the largest pipelines at the Q3 close are London with 79 projects/14,139 rooms; Dusseldorf, Germany, with 44 projects/7,959 rooms; and Istanbul with all-time highs of 40 projects/7,548 rooms, followed by Paris with 34 projects/5,379 rooms and Lisbon with 34 projects/3,923 rooms.

Europe’s top hotel companies in the construction pipeline are Accor with 249 projects/33,941 rooms, Marriott International with 197 projects/30,698 rooms, Hilton with 177 projects/26,634 rooms and Intercontinental Hotels Group (IHG) with 148 projects/20,071 rooms. These four companies account for 46% of projects in the total hotel construction pipeline in Europe. That percentage is expected to rise as some 23% of the projects in the pipeline have yet to select a brand.

The leading brands for these four companies are Accor’s Ibis brands with 88 projects/10,395 rooms, Tribe by Accor with 25 projects/3,815 rooms and Novotel with 22 projects/3,316 rooms. Marriott’s top brands at the close of Q3 are Moxy with 46 projects/7,807 rooms, Autograph Collection with 22 projects/2,952 rooms and Courtyard by Marriott with 19 projects/3,096 rooms. Hilton’s top brands in Europe are led by Hampton by Hilton with 63 projects/9,628 rooms, Hilton Garden Inn with 39 projects/5,992 rooms and Doubletree by Hilton with 23 projects/3,103 rooms. IHG’s top brands include Holiday Inn Express with 58 projects/8,413 rooms, Hotel Indigo with 17 projects/1,782 rooms and Holiday Inn with 16 projects/2,711 rooms.

During the third quarter, Europe opened 94 hotels/13,637 rooms, bringing the total opens in Europe year-to-date in 2022 to 293 new hotels accounting for 43,332 rooms. LE analysts forecast another 98 hotels with 13,041 rooms to open in Q4 for a year-end total of 391 new hotels/56,373 rooms. The LE forecast for new hotel openings expects 408 new hotels to open accounting for 59,684 rooms in 2023 and 419 new hotels /60,246 rooms to open in 2024.

Lodging Econometrics (LE)