LONDON—The Europe hotel development pipeline comprises 705 hotels totalling 120,488 rooms, according to the September 2010 STR Global Construction Pipeline Report released this week. The region reported 310 projects in the In Construction phase with 56,582 rooms.
“The European pipeline is the smallest compared to the existing supply of all the global regions,” said Elizabeth Randall, managing director at STR Global. “We have seen an average of 1.2-percent increase of supply so far this year and the pipeline of 705 hotels makes up only 1.4 percent of the total supply. The maturity of the market and limited land availability are some of the reasons for the smaller pipeline. Despite this, we have seen a continued interest to add new supply in established markets like the United Kingdom and Germany, which have the most upcoming projects; followed by an emerging destination, Russia, which sees more development in secondary markets across the country.”
Among the region’s countries, the United Kingdom ended the month with the most rooms in the total active pipeline (28,734 rooms) and in the In Construction phase (10,656). Germany reported 16,672 rooms in the total active pipeline and 7,645 rooms in the In Construction phase, followed by Russia with 15,627 rooms in the total active pipeline and 6,981 rooms in the In Construction phase.
Among the key markets in the region, London, U.K., reported the largest amount of rooms in the total active pipeline with 9,755 rooms, followed by Berlin, Germany (4,469 rooms), and Moscow, Russia (3,997).
Of the seven Chain Scale segments, the Upscale segment accounted for the largest portion of the total active pipeline with 23.7 percent and 28,615 rooms. Three other segments each made up more than 15 percent of rooms in the total active pipeline: Midscale with Food and Beverage segment (16.2 percent with 19,464 rooms); the Unaffiliated segment (15.7 percent with 18,956 rooms); and the Upper Upscale segment (15.5 percent with 18,648 rooms).
Europe pipeline by Chain Scale segment for September 2010 (number of rooms):
|
Chain Scale
|
Existing Supply
|
In Construction
|
Total Active Pipeline*
|
|
Luxury
|
60,803
|
5,956
|
11,426
|
|
Upper Upscale
|
203,110
|
10,515
|
18,648
|
|
Upscale
|
528,092
|
14,301
|
28,615
|
|
Midscale w/ F&B
|
466,288
|
8,780
|
19,464
|
|
Midscale w/o F&B
|
91,631
|
3,040
|
8,035
|
|
Economy
|
235,797
|
4,829
|
15,344
|
|
Unaffiliated
|
2,265,704
|
9,161
|
18,956
|
|
Total
|
3,851,425
|
56,582
|
120,488
|
* Includes those projects in the In Construction, Final Planning and Planning phases.
About STR Global
STR Global provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR Global is part of the STR family of companies and is proudly associated with STR, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.strglobal.com.
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