The August report of STR Global dedicated to construction pipeline reveals declining results compared to August 2014. Currently, there are 800 hotels under contract in Europe with the total of 130,093 guestrooms. This is 8.8% less than the number of rooms under contract in August 2014. The year to year decrease of rooms under construction estimates 5.9%. The number of guestrooms “under contract” includes all hotels at the stage of planning, final planning and under actual construction. Unconfirmed hotels are not included in the list.
When it comes to segments, the largest number of rooms under contract is in the upscale segment 25.3% with almost 33,000 guestrooms in total. There are two more segments of rooms under contract with the share of more than 15.0% - the upper midscale segment (23.2% with the total of 30,163 guestrooms) and the unaffiliated segment (15.8% share with the total of 20,540 guestrooms). If counting under construction rooms only, the upscale segment is a definite leader here with the share of 30.9% (16,628 guestrooms), and the midscale segment occupies the second place (19.4% or 10,426 guestrooms), followed by the upper upscale segment with the share of 17.6% and 9,447 guestrooms.