American Express Global Business Travel published its Hotel Monitor 2020 report, revealing that hotel development across Europe has hit a record high. While Germany is leading the European development boom with 379 projects in the pipeline, the UK follows close behind with 281 hotels in the works. This major expansion of room stock is occurring despite lower growth in the region, and uncertainties about Brexit and the global economic outlook.
At the end of 2018, Europe’s total construction pipeline had reached 1,569 hotels with 243,947 rooms, a 19% increase year-on-year. Branded hotels including IHG, Hilton, Marriott and Radisson account for the majority of new rooms, with budget categories including Holiday Inn Express and Hampton by Hilton proving the most popular with developers.
Joakim Johansson, Vice President of Global Business Consulting, said: “Despite signs that the global economy is facing challenges, the number of people travelling for business and leisure continues to grow. But, in most cities, a full hotel development pipeline means this sustained level of demand will not feed into big rate rises.”