Projects currently under construction represent nearly half of all activity, with 749 projects and 113,306 rooms in progress. A further 359 projects with 54,283 rooms are scheduled to begin construction within the next 12 months, accounting for 22% of the pipeline. Early planning continues to expand, rising 10% in project count and 8% in rooms year-on-year to 558 projects and 78,116 rooms. New project announcements also increased, reaching 96 projects and 11,108 rooms, up 3% year-on-year.
By chain scale, upscale projects lead the pipeline with 357 projects and 55,136 rooms, reflecting an 8% rise in projects year-over-year. The upper midscale segment follows with 300 projects and 43,721 rooms. The upper upscale category posted a notable milestone, reaching a record 287 projects and 45,885 rooms – a 7% increase in projects and a 4% increase in rooms compared with Q3 2024. Together, the upscale and upper midscale segments represent 39% of all projects in Europe.
Construction starts also rose during the quarter, reaching 92 projects and 11,203 rooms, up 11% year-on-year. Renovations and brand conversions remain a substantial part of the pipeline, with 667 projects and 87,640 rooms — an increase of 5% in projects and 7% in rooms year-over-year.
Among the leading development markets, the United Kingdom continues to hold first place with 277 projects and 39,402 rooms. Germany follows with 152 projects and 26,456 rooms. Turkey reached a record high of 140 projects and 19,866 rooms, while France posted a 9% increase in project count, reaching 114 projects and 11,097 rooms. Portugal rounds out the top five with 108 projects and 13,326 rooms.
In city rankings, London remains the largest development market with 76 projects and 14,169 rooms. Istanbul follows with 49 projects and 7,403 rooms, while Lisbon counts 38 projects and 4,223 rooms. Tashkent recorded strong growth, with 30 projects and 5,080 rooms 0 a 30% increase in project count year-on-year. Dublin completes the top five with 24 projects and 4,455 rooms.
Hotel openings also progressed steadily through Q3. Europe added 195 new hotels totaling 23,459 rooms in the first nine months of the year. Lodging Econometrics forecasts that an additional 105 hotels with 14,041 rooms will open by year-end, bringing the total for 2025 to 300 hotels and 37,500 rooms. Further growth is expected, with 338 hotels (47,694 rooms) projected to open in 2026 and 350 hotels (47,987 rooms) in 2027.
