Europe Hotel Development Pipeline Reaches 1,736 Projects in Second Quarter :: Hospitality Trends

Pipeline Grows 3% From a Year Earlier

According to Lodging Econometrics’ quarterly report, Europe had 1,736 hotel projects containing 255,976 rooms in its construction pipeline at the end of the second quarter of 2026. The totals represented year-over-year increases of 3% in both projects and rooms.

The under-construction stage included 773 projects with 116,172 rooms, accounting for 45% of all projects in the regional pipeline. The number of projects under construction increased 4% from a year earlier, while rooms increased 3%.

A further 332 projects with 50,332 rooms were expected to begin construction within 12 months. These projects represented 19% of the pipeline’s projects and 20% of its rooms.

Early planning activity accounted for 631 projects and 89,472 rooms. The figures were up 11% in projects and 13% in rooms from the second quarter of 2025. Early-planning projects accounted for 36% of all projects and 35% of rooms in the European pipeline.

Upscale and Upper-Midscale Segments Account for 41% of Projects

The upscale hotel segment had the largest number of projects in the pipeline, with 400 projects and 61,639 rooms. Both measures were 8% higher than a year earlier.

Upper-midscale hotels accounted for 306 projects and 43,622 rooms. Together, the upscale and upper-midscale categories accounted for 706 projects and 105,261 rooms, representing 41% of the region’s project total and 41% of its room total. The combined segment grew 4% in projects and 3% in rooms year over year.

Luxury hotel development included 187 projects with 21,930 rooms, a 9% increase in project count from a year earlier. Upper-upscale development reached 304 projects and 50,181 rooms, with project numbers up 11% and room totals up 13%.

The midscale category included 181 projects and 25,633 rooms.

New Construction Starts and Conversion Activity Continue

During the second quarter, developers began construction on 66 hotel projects totaling 7,835 rooms. New project announcements during the same period totaled 101 projects and 12,169 rooms.

Hotel renovations and brand conversions accounted for 640 projects and 82,841 rooms.

United Kingdom Leads Country Pipeline

The United Kingdom had the largest hotel pipeline among European countries, with 263 projects and 39,011 rooms. Turkey followed with 156 projects and 21,266 rooms. Turkey’s project total increased 13% year over year, while its room count rose 6%.

Germany had 146 projects with 24,821 rooms in development. France had 117 projects with 11,938 rooms, representing a 6% increase from a year earlier. Portugal had 115 projects and 13,915 rooms, with project volume increasing 4%.

The five largest national pipelines — the United Kingdom, Turkey, Germany, France and Portugal — represented 46% of all projects and 43% of all rooms in Europe’s hotel development pipeline.

London Has the Largest City Pipeline

London led European cities in hotel projects, with 70 totaling 12,912 rooms. Istanbul ranked second with 44 projects and 6,857 rooms. Its project count was 8% higher than a year earlier, while its total room count increased by 2%.

Lisbon had 40 projects with 4,476 rooms. Tashkent, Uzbekistan, had 29 projects and 4,631 rooms, reflecting a 4% increase in the number of projects. Hamburg had 25 projects containing 4,789 rooms, with projects up 4% and rooms up 6% from a year earlier.

More Than 300 Openings Forecast Annually Through 2028

Europe opened 112 hotels with 13,914 rooms during the first half of 2026. Another 195 projects with 25,884 rooms are expected to open during the third and fourth quarters.

For all of 2026, Lodging Econometrics forecasts 307 hotel openings with 39,798 rooms across Europe. The 2027 forecast calls for 303 openings and 42,729 rooms.

The company’s first forecast for 2028 European hotel openings projects 304 hotels with 43,099 rooms will open that year.