The number of hotel openings in Europe is expected to hit an all-time high in 2021, with more than 100,000 new rooms estimated for the year, according to STR data and analysis that will be presented at this week’s International Hospitality Investment Forum (IHIF) in Berlin.
More than 50,000 rooms have opened thus far in 2021, which is already more than all of 2020, and scheduled openings for the remainder of the year are expected to grow the number to more than 100,000 total. That growth reflects delayed 2020 openings and limited cancellations of planned projects to date despite the significant disruption in performance from COVID-19.
“The pandemic led to far more delays than deferred and abandoned projects in Europe—yes, performance has suffered during the pandemic, but many investors are still counting on the resilience of the sector,” said Robin Rossmann, STR’s Managing Director. “While the impact of this supply influx will of course vary by market, there will be even greater competition for properties that have weathered the pandemic and hope to achieve meaningful levels of recovery over the coming years. These new openings will not be replacement supply as most properties that closed because of the pandemic have reopened.”
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces.