30. August 2010 
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322 hotels to open in EMEA in 2012
Lodging Econometrics (LE) is releasing for the first time its 2012 Forecast for New Hotel Openings in Europe, the Middle East, and Africa (EMEA), as well as making downward revisions to year-end totals for 2010 and 2011. 322 hotels/67,680 rooms are expected to open in EMEA in 2012. A revised 322 hotels/56,602 rooms are scheduled to open by year-end 2010 and 296 hotels/58,301 rooms in 2011. This completes a topping off period for New Hotel Openings, as the Pipeline will substantially empty itself of new construction projects.
Impacted by the global recession, the total Construction Pipeline for EMEA decreased for the eighth quarter in a row to 1,307 projects/268,478 rooms in Q2. Construction financing remains very difficult to obtain, as banking is still in the early stages of recovery. The Pipeline will continue to decline into mid-decade, as projects already Under Construction and New Project Announcements (NPAs) into the Pipeline have been at a cyclical low for over a year.
Although down from the peak in 2008, New Hotel Openings in Europe are in the midst of a 3-year plateau. 167 hotels/31,657 rooms are projected to come online in 2012, preceded by 216 hotels/31,658 rooms in 2010 and 180 hotels/29,500 rooms in 2011. 62% of Europe’s projects will exit the Pipeline by the end of 2012.
The Forecast for New Hotel Openings in the Middle East has been adjusted substantially downward. Originally scheduled to open earlier, many projects have slowed and are now being pushed outward. In 2012, 111 hotels/28,498 rooms are expected to come online. In 2010, 59 hotels/15,558 rooms are now expected to open, while 2011 will see 76 hotels/21,141 rooms open. Delayed by the lack of available financing for completion, project and guestroom count decreases from LE’s earlier Forecast range from 22%-28% per year. Still, the flow of New Openings ahead is almost certain to create an overbuilt condition, outpacing the anticipated rate of demand growth in the region.
New Hotel Openings in Africa are in the midst of a 3-year plateau that will deplete the region’s Pipeline and effectively draw the current development cycle to a close. LE’s Forecast expects 44 hotels/7,225 rooms to open in 2012, preceded by 40 hotels/7,660 rooms in 2011. In 2010, a total of 47 hotels/9,386 rooms will come online. Approximately 70% of total projects in the Pipeline will exit through 2012.
Impacted by the global recession, the total Construction Pipeline for EMEA decreased for the eighth quarter in a row to 1,307 projects/268,478 rooms in Q2. Construction financing remains very difficult to obtain, as banking is still in the early stages of recovery. The Pipeline will continue to decline into mid-decade, as projects already Under Construction and New Project Announcements (NPAs) into the Pipeline have been at a cyclical low for over a year.
Although down from the peak in 2008, New Hotel Openings in Europe are in the midst of a 3-year plateau. 167 hotels/31,657 rooms are projected to come online in 2012, preceded by 216 hotels/31,658 rooms in 2010 and 180 hotels/29,500 rooms in 2011. 62% of Europe’s projects will exit the Pipeline by the end of 2012.
The Forecast for New Hotel Openings in the Middle East has been adjusted substantially downward. Originally scheduled to open earlier, many projects have slowed and are now being pushed outward. In 2012, 111 hotels/28,498 rooms are expected to come online. In 2010, 59 hotels/15,558 rooms are now expected to open, while 2011 will see 76 hotels/21,141 rooms open. Delayed by the lack of available financing for completion, project and guestroom count decreases from LE’s earlier Forecast range from 22%-28% per year. Still, the flow of New Openings ahead is almost certain to create an overbuilt condition, outpacing the anticipated rate of demand growth in the region.
New Hotel Openings in Africa are in the midst of a 3-year plateau that will deplete the region’s Pipeline and effectively draw the current development cycle to a close. LE’s Forecast expects 44 hotels/7,225 rooms to open in 2012, preceded by 40 hotels/7,660 rooms in 2011. In 2010, a total of 47 hotels/9,386 rooms will come online. Approximately 70% of total projects in the Pipeline will exit through 2012.
