There are currently 819 projects/128,284 rooms under construction. Projects planning to start construction in the next 12 months stand at 496 projects/76,633 rooms and those in the early planning stage at 389 projects/55,194 rooms are both at all-time highs.
All chain scales showed year-over-year increases and are at or near record high project counts.
Low-interest rates and accommodative lending terms are the drivers behind the soaring pipeline. Rates are not likely to turn upward anytime soon as they are deemed important to bolster slowing economies and needed to off-set further trade and tariff uncertainties. Consequently, the pipeline is expected to continue to grow at a healthy pace for the foreseeable future.
New project announcements into the pipeline for the last four quarters stand at a record high 855 projects/119,472 rooms. They have been running high for the last nine quarters and should continue at a strong pace into 2020.
In the first half of this year, Europe opened 213 new hotels with 28,167 rooms and is forecast to open another 192 new hotels with 24,689 rooms by year-end.
As a result of the thriving pipeline, the LE forecast for new hotel openings will continue to climb in the years ahead with 432 new hotels/60,694 rooms scheduled to open in 2020 and soaring to 484 new hotels with a whopping 74,220 rooms expected to open in 2021.
Should all the forecasted new hotels between 2019-2021 come to fruition, Europe’s census of open and operating hotel rooms, which currently stands at 2,885,630 rooms, will grow by seven percent.