According to Lodging Econometrics, Europe's Construction Pipeline is at 790 projects / 125,296 rooms at the end of Q1 this year.
The United Kingdom has the largest
country Pipeline in Europe, with 26% of its total projects. At 208
projects / 27,607 rooms, the UK Pipeline has grown 1% by projects, but
decreased 5% by rooms year-over-year (YoY). All other European
countries combined have seen a 9% increase in projects and 3% increase
by rooms YoY.
The rapid recessionary declines in Europe's Construction Pipeline have
abated. The Pipeline is in a lower bottoming channel for a fifth
consecutive quarter and will likely remain there until the sovereign
debt crisis eases, national economies show a more vigorous recovery,
improvement in hotel operations accelerates, and construction financing
becomes more available. In the meantime, over half of Total Pipeline
projects and rooms are now Under Construction, with many set to exit the
Pipeline as New Supply during the next two years. This will continue
to draw down Total Pipeline counts, as difficulties in securing
construction financing will keep New Project Announcements at low
levels.
In other continents, it is interesting to
note that Dubai has slowed down their hotel construction pipeline by
-21% from last year. Dubai is already tagged as an overcrowded hotel
market place vs. demand with the exception of budget hotels (many still
in development).
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