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Hotel Construction Pipelines Surge to Record Q2 Highs in Middle East and Europe

High-end projects in Saudi Arabia set new records with Europe’s largest-ever early-planning pipeline forecasting continued openings through 2027.

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Overview

  • The Middle East’s hotel pipeline climbed to 650 projects and 161,574 rooms in Q2 2025, marking year-over-year increases of 7% in projects and 10% in rooms.
  • Saudi Arabia accounted for a record 342 projects and 92,187 rooms, driven by major developments in Riyadh, Jeddah and Makkah.
  • Luxury and upper-upscale segments dominated the Middle East pipeline with 196 and 150 projects respectively, together representing more than half of total projects.
  • Europe’s pipeline reached 1,690 projects and 248,972 rooms at the close of Q2, featuring a record 570-project early-planning backlog and 744 projects under construction.
  • Project announcements and construction starts rose sharply in Q2 across both regions, underpinning near-term delivery and prompting LE to forecast over 300 hotel openings annually through 2025–2027.