Record hotel development worldwide - Europe's position

The global hotel industry is in a period of intense growth, with new investments in the sector reaching an all-time high. According to the latest report from the analysis company Lodging Econometrics (LE), at the end of 2024, there were 15,820 hotel projects in various stages of development, representing almost 2.5 million new rooms worldwide.

The distribution of hotel investments

The United States holds the lead in new hotel investments, with almost 6,400 projects in progress, corresponding to 40% of the global total. China follows in second place, with 3,800 new hotels, representing 24% of global investments in the sector.

India is also recording impressive growth, with the number of hotel projects increasing by 35% in one year, reaching 700 projects. Canada is in fourth place with 333 hotel projects, while Saudi Arabia completes the top five with 316 new hotels under development.

Europe and its dynamics in the hotel sector

Europe accounts for approximately 10% of new hotel investments worldwide, with 1,661 projects that will add a total of 244,464 new rooms to the market. Although the continent is not leading global growth, it remains an attractive investment option, as many European countries are developing their hospitality based on new travel trends and demand.

The market with the largest number of hotel developments in Europe is the United Kingdom, where 286 new hotels are planned, adding over 40,000 rooms to the country’s total capacity. Germany follows with 161 new hotels, while Turkey comes in third with a record number of projects (130 hotels). France (119 hotels) and Portugal (113 hotels) also make up the top five, indicating that investment is mainly focused on popular tourist destinations.

At the city level, London continues to be the leading European market for new hotel investment, with 77 projects underway and almost 15,000 new rooms. Istanbul follows with 49 new hotels and Lisbon with 35 projects. Dublin and Tashkent, Uzbekistan, share fourth place, with 24 new hotels each.

The strengthening of conversions and renovations

A notable element in the European hotel market is the increase in the conversions of existing properties into hotels, which reached 26% annually in terms of projects and 13% in terms of rooms, a total of 520 new hotel projects. Together with renovations, the total number of hotel interventions amounts to 667 projects and 84,289 rooms.

In terms of hotel categories, the upscale (352 projects), upper midscale (322 projects), and upper upscale (276 projects) categories represent 57% of all projects and 60% of new rooms in Europe. In addition, the luxury hotel sector recorded its greatest boom since 2019, with 127 new projects.

The outlook for 2025 and the challenges

In 2024, a total of 289 new hotels opened their doors in Europe, adding almost 39,000 rooms. Lodging Econometrics estimates that in 2025, there will be an increase of around 18% in new hotel investment, with 342 new hotels expected to open, offering an additional 48,500 rooms across the continent. In 2026, further growth is expected, with 399 new hotels and over 51,000 rooms joining the market.

However, despite the strong growth, the industry faces challenges such as rising construction costs, environmental restrictions, and a shortage of skilled personnel. In addition, slowing economic growth in some parts of Europe could affect the pace of new hotel development, especially in markets where financing depends on bank loans and venture capital.

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