The European hotel market continues its steady upward trend, with projects in the upper upscale category recording a historic record at the end of the third quarter of 2025.
According to the quarterly report by Lodging Econometrics (LE) for the third quarter of the year “Europe Hotel Construction Pipeline Trend Report”, the total construction index of hotel projects in Europe reaches 1,666 projects and 245,705 rooms, remaining almost unchanged on an annual basis.
300 new hotels to open in Europe in 2025
Meanwhile, 195 new hotels with 23,459 rooms opened in Europe from the beginning of the year to the third quarter of 2025. LE predicts an additional 105 hotel openings in the fourth quarter, bringing the 2025 total to 300 hotels and 37,500 rooms.
The growth momentum is expected to continue, with 338 new hotels and 47,694 rooms planned for 2026 and 350 new hotels and 47,987 rooms for 2027, showing that the European hospitality market remains highly attractive for investors and brands despite the economic challenges.
For the third quarter of 2025, across Europe, hotel projects under construction represent 45% of all new projects and 46% of all new hotel rooms, with 749 projects and 113,306 rooms.
Construction for a further 359 projects and 54,283 rooms is expected to start within the next 12 months, i.e. 22% of all projects and rooms, while 558 projects and 78,116 rooms are in the early planning phase (with shares of 33% and 32% respectively), up 10% in number of projects and 8% in rooms.
At the same time, at the end of the third quarter, 3% more new projects were announced compared to the corresponding period last year, reaching 96, with 11,108 rooms.
4 out of 10 new rooms in the upscale & upper midscale categories – Record in upper upscale
The most significant development of the quarter concerns the upper upscale category, which records a historic high with 287 projects / 45,885 rooms, increased by 7% and 4% respectively on an annual basis.
The upscale category remains first in number of projects with 357 projects and 55,136 rooms, increased by 8% and 6% respectively on an annual basis, while upper midscale follows with 300 projects and 43,721 rooms.
Overall, the top two categories in terms of project volume, upscale and upper midscale, account for 39% of all projects and 40% of rooms in Europe.
Construction starts in the third quarter amounted to 92 projects and 11,203 rooms, representing an 11% increase in projects year-on-year. Overall, hotel renovations and rebrandings amounted to 667 projects and 87,640 rooms, representing a 5% increase in projects and a 7% increase in rooms year-on-year.
Most projects in Great Britain, Germany and Turkey
At the country level, Great Britain maintains its lead with 277 projects and 39,402 rooms, followed by Germany (152 projects / 26,456 rooms), Turkey with a new record (140 projects / 19,866 rooms), France (114 projects / 11,097 rooms and an annual increase of 9%), as well as Portugal (108 projects / 13,326 rooms).
+30% new projects in Tashkent
London remains at the top with 76 projects and 14,169 rooms, followed by Istanbul (49 projects / 7,403 rooms), Lisbon (38 projects / 4,223 rooms), Tashkent, -included in the European survey- where a remarkable 30% increase is recorded (30 projects / 5,080 rooms), and Dublin (24 projects / 4,455 rooms).
