Hotel construction booming across Europe
Figures reveal strong construction levels across Europe
IHIF -- Research by JLL's Hotels & Hospitality Group has highlighted buoyant construction levels across the sector and predicts that the trend is set to continue.
According to data from STR, almost 40,000 new hotel rooms opened in Europe last year, with c. 69,000 currently under construction.
Most construction activity has been concentrated in the upper midscale segment of the market, securing around 25% of all construction projects, followed by the upscale segment at 23%. JLL predicts that this trend is set to continue.
According to JLL hotel investment volumes into the sector are also expected to rise from $20.5 billion dollars in 2016 to $22-£23 billion in 2017 across the Europe and Middle East region.
Richard Harris, Managing Director in JLL's Capital Works team, commented: "This strong construction pipeline demonstrates the strength of the sector in the face of global economic headwinds and challenges from disruptors such as Airbnb. There has been an extraordinary growth in consumers looking to discover new experiences, including choosing to rent apartments as their travel accommodation which means that hotel buildings will continue to evolve to stay at the cutting edge of travellers needs."
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.