What's Happening?
Europe is experiencing a notable increase in hotel construction, with a 5.2% rise in rooms under construction, according to CoStar's September 2025 data. This growth contrasts with declines in other regions
such as Asia Pacific, the Middle East, Africa, and the Americas. The United Kingdom and Germany are leading this expansion in Europe, reflecting a robust recovery and growing confidence in the region's travel sector. In contrast, the Asia Pacific region saw a 3.2% decrease in construction, while the Middle East and Africa experienced a 9.4% drop. The Americas also faced an 8.8% decrease in construction activity.
Why It's Important?
The growth in Europe's hotel construction indicates a strong recovery in its travel sector, which could have positive economic implications for the region. This trend suggests increased tourism and business travel, potentially boosting local economies. Conversely, the decline in other regions highlights challenges in the global hospitality industry, possibly affecting employment and economic growth in those areas. The disparity in construction activity underscores the uneven recovery from the pandemic's impact on global tourism.
