Recently, Lodging Econometrics (LE), a world-renowned hotel research institution, released the latest "Europe Hotel Construction Pipeline Trend Report" and "Middle East Hotel Construction Pipeline Trend Report".
01 European hotel construction shows a growth trend
According to the report, at the end of the second quarter of 2020, European hotel construction pipeline projects increased by 9% and guest rooms increased by 13%, reaching 1,851 projects and 295,038 guest rooms by the end of the quarter, and the number of projects and rooms in the second quarter was slightly higher. The total for the previous quarter.
In addition, the number of projects under construction has reached a record high with a total of 923 projects/149,637 rooms; the number of projects planned to start construction in the next 12 months is 477 projects/75,818 rooms; there are 451 projects/69,583 in the initial stage of the plan Room, year-on-year growth of 16% and 26% respectively. In the first quarter of 2020, only 35 new hotels were opened in Europe, providing a total of 5,998 rooms. This is the least number of project openings recorded in the LE area since 2012, and it is also the result of the suspension of construction projects in the area due to the pandemic.
The UK region set a record high, leading the construction industry with 350 projects / 52,398 rooms, followed by Germany with 323 projects / 58,533 rooms, followed by France with 172 projects / 21,405 rooms, and then Portugal, the highest in history, has 123 projects/14,329 rooms, followed by Poland, with 91 projects/14,257 rooms.
The cities with the most pipelines in Europe are: London has 94 projects / 16,542 rooms; Düsseldorf has 57 projects / 11,254 rooms; Paris has 40 projects / 6,350 rooms. Libson is closely followed with 38 projects, and the total number of guest rooms reached a record 4,173. This was followed by 35 projects / 7,496 rooms in Hamburg, a record high.
44% of all European hotel construction pipeline projects are occupied by four global franchise companies. They are Accor Hotels, which leads other European franchise companies with 236 projects / 32,092 rooms; the second is Marriott International, which provides 217 projects / 36,108 rooms; the third is The Hilton Worldwide Hotel, a record high, has a total of 207 projects/32,696 rooms; followed by InterContinental Hotels Group (IHG) with 151 projects/24,276 rooms.
The leading brands of these four companies are the Ibis brand of Accor Hotels, with 106 projects / 13,510 rooms, followed by Mercure and Novotel Hotels, with 26 projects / 3,075 rooms and 25 projects / 3,890 respectively room. The top brands of Marriott International have 72 projects / 12,876 rooms Moxy, 27 projects / 4,739 rooms Courtyard Hotel and 22 projects / 2,873 rooms Autograph Collection. The Hilton Worldwide Hotel Group is led by Hilton Hampton Hotel Group, setting a record high with 79 projects/12,575 rooms; Hilton Garden Inn has 45 projects/7,545 rooms; DoubleTree by Hilton Hotel has 30 projects with 3,802 rooms Guest rooms, a record high. InterContinental's top brands include Holiday Inn Express with 28 projects / 6,798 rooms and Hotel Indigo with 17 projects / 1,793 rooms.
Just like the rest of the world, European hotel construction projects are also facing slight delays in the project schedule of about two to four months.
02 The hotel construction pipeline in the Middle East continues to show a downward trend
According to the latest "Middle East Construction Pipeline Trends Report", analysts at the Lodging Econometrician (LE) stated at the end of the second quarter of 2020 that the hotel construction pipeline in the Middle East has decelerated again to 591 projects/169,538 rooms.
Pipeline projects in the Middle East fell 7% year-on-year, while guest rooms fell 6% year-on-year. This is the fourth consecutive quarter of decline in the pipeline since the project reached a cyclical peak in the second quarter of 2019.
However, the projects currently under construction set an all-time high of 363 projects/117,458 rooms. By the end of the second quarter, the number of projects planned to start construction in the next 12 months had fallen by 31% year-on-year and 34% year-on-year to 109 projects/25,658. The projects in the early planning stage are 119 projects/26,422 rooms. In addition, in the second quarter, only 7 new hotels were opened in the Middle East, providing a total of 1,469 rooms.
The country with the largest number of projects under construction is Saudi Arabia, with 210 projects/69,610 rooms; the United Arab Emirates has 186 projects/55,797 rooms; followed by record-breaking Egypt, with 60 projects/14,641 Room; then Qatar, with 57 projects, the highest number of rooms in history is 14,538; while Oman has 36 projects / 6,967 rooms; Dubai with 144 projects / 44,895 rooms continue to lead the construction pipeline of the United Arab Emirates.
The city with the most hotel construction pipelines is the provincial region, with 67 projects/14,104 rooms; Riyadh has a record total of 62 projects/12,414 rooms; Doha, Qatar has 50 projects/12,234 rooms; Jeddah owns 50 projects / 10,705 rooms; Mecca has 31 projects / 32,387 rooms. 44% of the projects in the Middle East construction pipeline are located in these five cities.
At the end of the second quarter, the leading franchise companies in the Middle East included Hilton Worldwide, which topped the list with 96 projects/26,188 rooms and set a new project record; followed by Marriott International’s 88 projects with 21,875 Two rooms; Accor, with 84 projects / 25,277 rooms. These three companies alone accounted for 45% of the hotel construction projects in the Middle East.
The leading brands that these companies are preparing are the DoubleTree by Hilton Hotel with 26 projects / 6,355 rooms and the Hilton Hotels and Resorts with 22 projects / 7,070 rooms; the Marriott Hotel Courtyard has 21 projects / 4,382 rooms, Residence Inn has 17 projects / 2,057 rooms under construction; Accor's top brand is the Ibis brand with 13 projects / 4,474 rooms, Adagio City Aparthotel with 11 projects / 2,288 rooms and 11 projects / 2,857 rooms Novotel.
