Lodging Econometrics (LE) has published its Hotel Construction Pipeline Trend Report for Europe covering the second quarter of 2026. According to the firm’s analysts, the region’s total pipeline stood at 1,736 projects and 255,976 rooms at the close of the quarter, a rise of 3% in both project and room count year-on-year.
Early planning stage hits a record high
At the close of the second quarter, 45% of hotel projects in the European pipeline were in the construction phase, comprising 773 projects and 116,172 rooms, up 4% by project count and 3% by room count year-on-year. A further 332 projects and 50,332 rooms are due to begin construction over the next twelve months, representing 19% of projects and 20% of rooms in the total pipeline.
Projects in the early planning stage reached a record high of 631 projects and 89,472 rooms, up 11% by project count and 13% by room count year-on-year, lifting their share to 36% of projects and 35% of rooms in the regional pipeline.
Upper-tier segments outpacing the wider market
In the second quarter, the luxury segment reached a record high of 187 projects and 21,930 rooms, up 9% by project count year-on-year. The upper upscale segment also hit a record, at 304 projects and 50,181 rooms, up 11% by project count and 13% by room count.
The upscale segment remains ahead of all categories with 400 projects and 61,639 rooms, up 8% in both projects and rooms year-on-year. Upper midscale stands at 306 projects and 43,622 rooms, while midscale totals 181 projects and 25,633 rooms. Combined, the upscale and upper midscale segments, which lead by project count, account for 706 projects and 105,261 rooms, or 41% of projects and 41% of rooms in the total European pipeline, up 4% by projects and 3% by rooms year-on-year.
Construction starts, renovations and new announcements: the quarter in numbers
In the second quarter, 66 new construction projects, representing 7,835 rooms, broke ground, while new project announcements (NPAs) totalled 101 projects and 12,169 rooms for the period. Combined renovations and brand conversions reached 640 projects and 82,841 rooms.
United Kingdom, Turkey, Germany: the leading three countries
The United Kingdom retains first place in the European ranking by number of pipeline projects, followed by Turkey, Germany, France and Portugal. Together, these five countries account for 46% of projects and 43% of rooms in the region’s total pipeline.
| Country | Projects | Rooms | Year-on-year change |
|---|---|---|---|
| United Kingdom | 263 | 39,011 | – |
| Turkey | 156 | 21,266 | +13% projects / +6% rooms |
| Germany | 146 | 24,821 | – |
| France | 117 | 11,938 | +6% rooms |
| Portugal | 115 | 13,915 | +4% projects |
London, Istanbul, Lisbon: the most active cities
At city level, London retains its top spot in Europe, ahead of Istanbul, Lisbon, Tashkent in Uzbekistan, and Hamburg. This ranking confirms the enduring weight of the British market in European hotel development, as several international groups schedule openings there before the end of the decade.
| City | Projects | Rooms | Year-on-year change |
|---|---|---|---|
| London | 70 | 12,912 | – |
| Istanbul | 44 | 6,857 | +8% projects / +2% rooms |
| Lisbon | 40 | 4,476 | – |
| Tashkent | 29 | 4,631 | +4% projects |
| Hamburg | 25 | 4,789 | +4% projects / +6% rooms |
Openings 2026-2028: LE unveils its first three-year forecast
In the first half of 2026, 112 new hotels, representing 13,914 rooms, opened across Europe. LE anticipates a further 195 projects and 25,884 rooms for the third and fourth quarters, bringing the full-year forecast to 307 new hotels and 39,798 rooms for 2026 as a whole.
The firm also forecasts 303 new openings and 42,729 rooms for 2027. For the first time, LE has additionally published an openings forecast for 2028, projecting 304 new hotels and 43,099 rooms across Europe. This three-year visibility, a first for the firm in the region, gives investors and developers an extended planning horizon, in keeping with the hotel construction momentum already observed in Europe in recent years.
At a Glance
Europe’s hotel construction pipeline reaches 1,736 projects/255,976 rooms at Q2 2026, up 3% YOY
Early planning stage hits a record high: 631 projects/89,472 rooms, up 11% by projects YOY
Luxury (187 projects) and upper upscale (304 projects) chain scales both reach record highs
United Kingdom leads all countries with 263 projects/39,011 rooms; London tops the city rankings with 70 projects
307 new hotel openings forecast for 2026, followed by 303 in 2027 and 304 in 2028
LE issues its first-ever 2028 new hotel openings forecast for Europe
