by Elise Schoening | September 13, 2019
Europe's hotel construction pipeline has reached record heights this year, according to analysts at Lodging Econometrics. The consulting firm found that 1,704 projects totaling 260,111 guest rooms are either under construction, will soon start construction or are in the planning stages. This represents a 23 percent increase in projects and a 19 percent increase in rooms year-over-year.

More than 200 new hotels with 28,167 rooms opened in Europe during the first half of 2019. An additional 192 hotels with 24,689 rooms are expected to open by year's end.

Lodging Econometrics attributes low interest rates and other favorable lending terms as the main drivers behind the soaring numbers. According to the firm, new project announcements for the last nine quarters have been high -- a trend that is expected to continue in 2020.

Germany currently represents the largest share of the hotel construction pipeline in Europe with a record 320 projects and 57,689 rooms in the works. The United Kingdom ranks second with 280 projects and 40,970 rooms. France follows with 184 projects and 22,140 rooms. 

The cities with the most action are London (78 projects/13,632 rooms), Paris (54 projects/7,946 rooms) and Dusseldorf, Germany (52 projects/10,178 rooms).

The findings also show that four global franchise companies account for 47 percent of hotel construction in Europe. These include AccorHotels (261 projects/35,183 rooms), Marriott International (211 projects/34,432 rooms), Hilton Worldwide (174 projects/26,887 rooms) and InterContinental Hotel Group (148 projects/24,152 rooms).