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Europe’s hotel sector is experiencing significant growth, riding the travel industry rebound wave. Unsurprisingly, new construction projects lead the charge over conversions and renovations. According to Lodging Econometrics, by the end of the first quarter of 2024, over 250,000 rooms were under construction in Europe, a substantial number compared to the 74,000 rooms undergoing conversion or renovation.
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At the end of Q4, LE said, each stage of the pipeline showed "robust activity" with:
  • 2,970 projects (+15%) and 345,640 rooms (+19%) in the early planning stage, which LE said represented "unprecedented counts;"
  • 2,259 projects (representing 259,108 rooms) scheduled to start construction in the next 12 months; and 1,149 projects with 142,238 rooms under construction.
  • Also on the rise during Q4, according to LE, were new project announcements – 459 new projects with 58,123 rooms.
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Death to AIRBNB?
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I don't think so. As long as tourism continues to grow, there's room for everyone. The new buildings are a response to this increase in tourism and the restrictions that some European cities are imposing on local rentals (aka airbnb, booking, etc).
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