Europe’s Construction Pipeline Sluggish as Development in the Middle East Picks Up

At the end of Q2, Europe’s construction pipeline stood at 807 projects/132,187 rooms, a scant year-over-year (YOY) increase of 8 percent by projects and 1 percent by rooms, according to Lodging Econometrics. Overall pipeline growth has been lackluster since the cyclical bottom established in 2010. Both projects under construction and annualized construction starts experienced a brief peak in Q3 2012 when projects previously stalled in the pipeline during the Great Recession migrated forward toward construction as lending first became available. However, since that peak, both metrics have trended downward for seven consecutive quarters.

The Middle East has 327 projects/87,611 rooms in the construction pipeline with YOY gains of 18 percent by projects and 8 percent by rooms. Projects under construction showed a small gain YOY, 7 percent by projects and 6 percent by rooms, while projects scheduled to start in the next 12 months have increased 40 percent by projects but just 13 percent by rooms.

Read the full report here.

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