Economy Eroding European Pipeline

-- Hotels, 10/3/2008 7:43:00 AM

Lodging Econometrics has released its H1 2008 report for lodging construction in Europe. At the end of the second quarter the pipeline stood at 1,022 hotels and 172,249 room. Here are a few highlights:

Key Development Metrics indicate the economic slowdown and tight lending environment are eroding developer sentiment, meaning that the Pipeline has likely reached peak levels for the cycle and will be in decline moving forward.

At the front end of the Pipeline, Under Construction totals have risen steadily for the last six quarters and appear to be at their zenith at 574 projects/94,994 rooms. These projects acquired financing before the global credit crisis crested and are expected to come online as New Hotel Openings through early 2010.

Projects Scheduled to Start Construction in the Next 12 Months have risen to 228 projects/39,164 rooms, but are likely to stall as the availability of financing and lending terms stiffen. Early Planning declined to 220 projects/38,091 rooms, reflecting a drop in New Project Announcements into the Pipeline.