Despite Economic Slowdown, Hotel Franchises Keep Expanding

The year-end 2022 Europe Hotel Construction Trend Report from Lodging Econometrics is out and the results are impressive.

Analysts report that Europe's total construction pipeline stood at 1,711 projects/260.911 rooms at the end of the fourth quarter.

At the close of Q4, there were 784 projects/123.377 rooms under construction, 403 project/60.724 rooms planned to start construction within the next 12 month, and 524 projects in the early planning phase, accounting for 76.810 rooms.

Despite slowing economic growth in the region, Europe is still the most popular tourist destination worldwide. Six of the top ten most-visited international destinations are located in Europe in 2022. As Europe's tourism activity continues to recover, franchise companies, investors and owners will continue to invest in the region.

The countries in Europe with the highest number of projects in the pipeline at Q4 close include the United Kingdom, with 295 projects/43.3332 rooms, Germany, with 257 projects/43.952 rooms, France, with 152 projects/17.267 rooms, Portugal, France, Portugal, and Turkey, which had record-highs prior to the earthquake, with 92 projects and 14,521 room.

London has 75 pipelines and 12,850 rooms. Istanbul has 42 projects/7.997 rooms and Lisbon has 35 projects/3.878 rooms. Paris has 31 projects/5.174 rooms.

Accor is Europe's largest hotel company, with 286 projects/37.617 rooms and Hilton Worldwide with 195 projects/28.984 rooms. Next are Marriott International with 185 projects/28.854 rooms, InterContinental Hotels Group IHG with 153 projects/20.497 rooms and Radisson Hotel Group with 45 projects/8.037 rooms. These five companies account for half of the projects in the region and 48% of all rooms.

Accor's Ibis, which has 99 projects and 11,652 rooms, is the leading brand for new development in Europe. Mercure Hotel has 30 projects and 3,061 rooms. The top Hilton Worldwide brands in Europe include the Hampton by Hilton brands with 74 projects/10.762 rooms and Hilton Garden Inn with 41 projects/6.267 rooms. Moxy with 41 projects/6.693 rooms and the Autograph Collection with 21 projects/3.035 rooms are two of Marriott International's most popular brands. Holiday Inn Express with 58 projects/8.019 rooms and Holiday Inn Express with 19 projects/3.180 rooms were IHG's top-selling brands at the quarter's end.

In Europe, 373 hotels opened with 55,647 room through the fourth quarter 2022. The number of new project announcements has increased significantly over the past three quarters. This suggests that there will be more hotel openings in Europe in the future than in 2022. According to the LE forecast, 424 new hotels will open. This would account for 61 534 rooms in 2023, and 396 new hotels/55 280 rooms in 2024.

 

Source: hotelnewsresource.com