The European hotel sector reported a contraction in its construction pipeline in February, according to the latest STR Global data.
There are 898 hotels totalling 142,604 rooms Under Contract in Europe, according to the February 2015 STR Global Construction Pipeline Report. This represents a 5.8-percent year-on-year decrease in rooms Under Contract compared with February 2014 and a 5.3-percent decrease in rooms under construction. The under contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the unconfirmed stage.
Among the Chain Scale segments, the upscale segment accounted for the largest portion of rooms in Under Contract (25.1 percent) with 35,740 rooms. Two other segments each accounted for more than 15.0 percent of rooms in Under Contract: the upper midscale segment (21.1 percent with 30,155 rooms) and the unaffiliated segment (16.6 percent with 23,694 rooms).
The Upscale segment also made up the largest portion of rooms under construction (32.4 percent with 18,731 rooms) followed by the Upper Upscale segment (20.3 percent with 11,763 rooms) and the Upper Midscale segment (17.3 percent with 10,037 rooms).