2023 to Bring a Boost in the Hotel Industry with New Constructions on the Rise

2023 to Bring a Boost in the Hotel Industry with New Constructions on the Rise

Despite the continent's economic worries, major hotel chains across the globe are advancing with their plans to expand in Europe.

By 2022 end, just over 1,700 hotels across Europe were in the construction pipeline, according to data shared by an industry analyst Lodging Econometrics (LE). Total rooms across the continent will increase by 261,000 once these projects are complete.

The data comprises 784 projects that are under construction and 403 others scheduled to begin construction this year.

According to LE's market analysis, "Europe remains the most popular tourist destination in the world, with six of the top ten most visited international tourist destinations located in the region despite slowed economic growth throughout the region in 2022.”

"Travel activity in Europe is expected to continue to rebound in 2023," and "owners, investors, and franchise companies will continue to focus on development efforts in the region as hotel operating performance improves.”

With 286 hotels, Accor (a French firm) is on the top of the list with most European properties in the pipeline. Hilton, Marriott International, and InterContinental Hotels Group follow with 195, 185, and 153 properties respectively.

Accor again leads the list of brands with its Ibis budget chain having 99 projects in Europe, followed by Hampton by Hilton (74). Additionally, Holiday Inn and Holiday Inn Express by IHG have 77 projects in total. With 41 properties, Marriott’s brand Moxy tops the list of the highest number of new hotels (41).

In terms of nations, the UK takes the top spot with 295 hotels in Europe. Germany (257), France (152), and Portugal (130) take the subsequent positions.

With 75 projects, London continues to be the centre of European hotel development. It leaves other western European cities like Paris (31), Düsseldorf (42), and Lisbon (35) far behind.

LE added, "New project announcements have increased significantly over the last three quarters, indicating there will be more new hotel openings in the region this year, compared to 2022."

This year, the company projects opening 424 new hotels in Europe, adding over 61,000 rooms. In 2024, this number is expected to fall slightly to 396 hotels with 55,000 rooms.