Recent data from ASAP Business and Distribution Partner STR reveals an increase in new hotel openings across Europe, up from just over 52,000 rooms in 2016 to 63,454 new rooms in 2018.
This article discusses where these rooms have come from and where are likely to be the next cities of growth, driven in 2018 by markets such as Amsterdam, Berlin, London, Moscow and Warsaw.
STR pipeline data suggests supply growth could increase to over 90,000 new rooms in 2019, and forecasts some of the top growing markets are likely to be London, Edinburgh, Manchester, Liverpool and Plymouth in the UK, Amsterdam both central and surrounds, and several German cities such as Frankfurt, Munich Hamburg and Berlin.
While uncertainty around Brexit has posed some challenges for the industry, it has made hotel investment attractive to many, while the whole German-speaking area has also seen a surge in hotel investment. Amsterdam is also seen as attractive, both the operational and investment sides.
STR concludes that despite this additional supply, the continent should enjoy its 10th consecutive year of RevPAR growth in 2019.