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Portsmouth, NH, U.S.A. – Lodging
Econometrics (LE), the Global Authority for Hotel Real Estate, announces
the compilation and publication of the first ever comprehensive Lodging
Development Pipeline including a forecast for New Hotel Openings for
’07, ’08, ’09 and beyond for every country in Europe.
There are 513 Construction projects being actively pursued by developers
having 93,669 rooms in the 40 countries throughout Europe. 59% of the
total, or 302 projects having 52,580 rooms, are already Under
Construction. Another 74 projects / 13,830 rooms are Scheduled to Start
Construction in the Next 12 Months while 137 projects / 26,989 rooms are
in various stages of Early Planning.
After years of modest growth the region is benefiting from an expanding
global economy, unprecedented availability of investment capital, a
flourishing tourism industry and now appears to be firing on all
cylinders. Coupled with rising occupancies, accelerating room rates and
a shortage of guestrooms in many key markets, Europe is proving to have
an attractive investment climate which is sparking a development surge
in the lodging industry.
LE’s new European reports describe the development upswing. They consist
not only of individual project records, but also contain a forecast of
New Openings for ‘07, ‘08, ‘09 and beyond for: each country and market,
the leading developer groups and for every brand and company. It’s been
a massive task to compile such detailed information in the development
community and then re-verify it’s accuracy with brand management. LE was
first encouraged to extend the company research globally by Wall St.
clients who found International operations to be a growing component of
the U.S. hotel companies and real estate investment groups that they
track. Preliminary indications are that LE’s research reports will prove
to be even more valuable to European based industry analysts, developers
and lodging companies as well.
Of the 513 hotels in the Pipeline, 272 or 53% of the projects will be
full-service 4 and 5 star operations located mostly in city centers,
close to suburban locations, near airports or at destination resort
locations. 281 of the projects are between 100-200 rooms, primarily
select service properties with limited food and beverage and meeting
facilities.
Developers have already chosen a brand for 72% of the projects in the
Pipeline. LE expects approximately 10% more to make a branding
decision as projects migrate forward through the approval and financing
process. Having over 80% of all New Openings branded is striking
testimony to the power and importance of International brands in a
growing globalized economy.
The Pace of New Openings will Start to Accelerate Beginning in ‘07
LE’s first ever Supply Side forecast for Europe shows that 143 Hotels /
23,046 rooms will open in ‘07, about 28% of all Pipeline projects.
Another 176 Hotels / 30,234 rooms, or 34% are Scheduled to Open in ’08
while the remaining 194 are scheduled for ‘09 and beyond. Because
investment capital is so widely available at historically attractive
rates, we expect a continued flow of New Project Announcements into the
Pipeline meaning that New Openings won’t peak until early next decade.
The United Kingdom has the Largest Pipeline in Europe
In previous cycles the five largest economies in Europe: Germany, the
United Kingdom, France, Italy and Spain have usually had the highest
development activity.
With 147 projects, the United Kingdom has the largest Pipeline this
cycle by far. It represents 29% of the Pipeline total. 63 projects are
Under Construction while another 24 are Scheduled to Start in the Next
12 Months. An unusually high 60 projects are in various phases of Early
Planning. That count will grow even further with additional New Project
Announcements expected now that London has been selected as the site for
the 2012 Olympic Games.
London has been a booming real estate market and enjoys the highest
occupancy in Europe. Even without the added impetus of the Olympics,
London, with 74 projects / 13,417 rooms in the Pipeline, already has 50%
of all projects under development in the United Kingdom. London also has
nearly five times as many projects in the Pipeline as Moscow the second
leading city in Europe. Spain is the second largest country with 74
projects in the Pipeline.
Russia, a surging economy buoyed by oil and gas development has a fast
growing Pipeline, 34 projects with 8,867 rooms. The average project size
is high at 261 rooms, the highest reported in any European country. Its
two major cities are under roomed. Moscow with 15 projects, and Saint
Petersburg with 10, account for 74% of all Russian projects and 82% of
rooms under development.
Turkey is a thriving market economy undergoing an economic renaissance.
It’s the fourth most active country in the region with 28 projects /
5,874 rooms in the Pipeline. Development is intense. Half of the
development is centered in the largest commercial center in Istanbul.
There has not been a development spurt quite like this in some time.
Economies are growing, we are in an extended period of prosperity,
investment capital is available, rates are attractive, and the lodging
industry has rebounded nicely. Every developer seems to want to ‘catch
the curve’ this cycle. The next few years appear quite opportunistic for
lodging development, with one critical proviso; that there is no
substantial change in the political or economic horizon.
Lodging Econometrics
(LE) of Portsmouth, NH is the global authority for hotel real estate. LE
conducts Supply Side research for all markets, developers and brands and
companies in: U.S.; Canada; Mexico, Central America and the Caribbean;
Europe; Asia; Middle East; South America; and Africa.
LE provides:
▪ Development Pipeline Reports for any important international
market, country or region throughout the
world. Reports contain Individual Project Records, which provide
comprehensive contact information for the
developer,
the latest Start and Completion Dates, project size, location, and chain
scale (star rating), plus
detailed
commentary about each project. Each Pipeline Report provides a Supply
Side Forecast for the
next three
years and beyond and a development summary of the current Pipeline for
each of the three
stages;
Under Construction, Starts in the Next 12 Months and Early Planning.
• The Names of Owners and Management paired with the Census of
Open and Operating Hotels perfect for
making acquisition/disposition decisions, soliciting management
contracts and assessing development
opportunities.
• Sales Comps for the most Recent Real Estate Transactions.
Reports can be customized sorted by
market, country or region, chain scale or by leading brands & companies.
To learn more about LE’s products and services or to inquire about
ordering a customized report, please contact LE at +1 (603) 431-8740 ext.
25, or visit them online at www.lodging-econometrics.com.
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