Turkey Ranks Second in Europe’s Hotel Investment Pipeline: What Do 156 Projects Tell Us?

Turkey has secured the second position in Europe’s new hotel development map, following the United Kingdom. According to Lodging Econometrics’ Q2 2026 data, the country has a development pipeline of 156 hotel projects and 21,266 rooms. The number of projects has increased by 13% compared to the same period last year, while the number of rooms has risen by 6%.

Istanbul holds a similar position in the city rankings. With 44 projects and 6,857 rooms, Istanbul has the second largest hotel development pipeline in Europe after London, with project numbers growing by 8% annually and room capacity increasing by 2%.

The figures indicate that investment appetite remains strong. However, it is not accurate to assume that all 156 projects are currently under construction or will definitely open. The hotel development pipeline includes not only active constructions but also projects expected to start construction soon and those still in early planning stages.

This distinction is critical for accurately assessing Turkey’s position in the rankings.

1,736 Projects in Development Across Europe

According to Lodging Econometrics’ Q2 report, the total hotel development pipeline across Europe consists of 1,736 projects and 255,976 rooms. Both project and room counts have increased by 3% annually.

Of these, 773 are currently under construction, totaling 116,172 rooms. 332 projects and 50,332 rooms are planned to start construction within the next 12 months, while 631 projects and 89,472 rooms are in early planning stages. The 11% annual increase in the number of projects in early planning indicates that the development appetite in Europe is not limited to existing construction sites.

Turkey’s pipeline of 156 projects corresponds to approximately 9% of this total.

In the country rankings, the United Kingdom leads with 263 projects and 39,011 rooms. Following Turkey, Germany has 146 projects and 24,821 rooms, France has 117 projects and 11,938 rooms, and Portugal has 115 projects and 13,915 rooms. The top five countries account for 46% of the total project count in Europe.

Turkey Surpassed Germany in One Quarter

Turkey’s current position has changed in the recent period.

According to the end-of-2025 data, the United Kingdom was in first place with 274 projects, Germany was second with 147 projects, and Turkey was third with 146 projects.

In the first quarter of 2026, Turkey reached 157 projects, surpassing Germany and rising to second place in Europe. Although the project count decreased to 156 in the second quarter, Turkey maintained its second position.

This change indicates more than just a quarterly ranking shift. The annual increase of 13% in the number of projects in Turkey is significantly higher than the 3% growth across Europe.

In contrast, the increase in room count is at 6%. The faster rise in the number of projects compared to room capacity suggests that there may be changes in the average scale of facilities added to the pipeline; however, existing open data alone does not suffice to clarify the reason.

Istanbul Accounts for About One-Third of Turkey’s Pipeline

Istanbul’s 44 projects correspond to approximately 28% of the 156 projects nationwide. On the room side, the 6,857-room pipeline in Istanbul constitutes about 32% of the national total.

In the ranking of European cities, London is far ahead with 70 projects and 12,912 rooms. Lisbon follows Istanbul with 40 projects, Tashkent with 29 projects, and Hamburg with 25 projects.

The situation in Istanbul raises an important question regarding city hospitality: Will demand grow at the same pace as new supply comes online?

An expanding investment pipeline can be one of the indicators of investor confidence. However, for existing businesses, new room supply can also increase price competition and demand for human resources, especially in certain regions.

Upper Segment Hotels Are Increasing Their Weight in the Investment Pipeline

A significant portion of new projects in Europe is concentrated in the upper segments.

The upscale category has 400 projects and 61,639 rooms, making it the largest segment. The upper-midscale category includes 306 projects and 43,622 rooms. Together, these two segments account for 41% of the total hotel pipeline in Europe.

The upper-upscale segment has also reached a record level with 304 projects and 50,181 rooms, while the luxury segment includes 187 projects and 21,930 rooms. The number of luxury projects has increased by 9% annually.

This distribution is significant not only for investors but also for suppliers serving hotels. The increase in upper segment facilities may diversify the need for kitchen equipment, F&B concepts, technology, furniture, textiles, housekeeping, wellness, and qualified staff.

The impact of new hotel investment on the economy is not limited to room construction alone.

It Is Important Not to Confuse Pipeline with Openings

In the first half of 2026, 112 new hotels and 13,914 rooms officially opened in Europe. Lodging Econometrics expects an additional 195 hotels and 25,884 rooms to open in the second half of the year. Thus, a total of 307 new hotels and 39,798 rooms are projected for the entire year.

For 2027, the forecast includes 303 hotels and 42,729 rooms, while for 2028, it is 304 hotels and 43,099 rooms.

These figures indicate that not every project in the pipeline is completed within the same timeframe. Financing conditions, permitting processes, construction costs, brand agreements, or investor decisions can alter the timing of projects.

Therefore, a statement like "156 new hotels are coming to Turkey" exceeds the scope of the data. The correct expression is that there are 156 hotel projects at different stages of development in Turkey.

What Does New Supply Mean for Existing Hotels?

New hotel investments can strengthen the destination's capacity, product diversity, and international brand presence. However, it also means more intense competition for existing businesses.

Especially with the introduction of new capacity in Istanbul, not only room price competition but also competition for employees may increase. Every new hotel that opens needs to establish reception, housekeeping, kitchen, service, sales, revenue management, and technical teams.

If the pool of qualified staff does not grow at the same pace, new supply may drive up personnel costs and employee turnover rates.

Another aspect is differentiation. In a market where a significant portion of new facilities is positioned in the upscale and upper segments, it may become challenging for existing hotels to compete solely with physical products. F&B experience, technology, service standards, loyalty programs, and the quality of human resources will gain more importance.

Stafflink’s Perspective

Turkey's second place in Europe’s hotel development pipeline is a strong investment indicator for the sector. However, a high number of projects alone does not imply a healthy hotel market.

In our view, the critical question for the upcoming period will not be how many new hotels will be built, but how the new supply will be sustainably operated with the demand and human resources that arise.

While new investments increase room capacity, they will also create a need for thousands of new employees, new supply relationships, and stronger operational systems. Especially in cities like Istanbul, where investment is intense, businesses should not only monitor future room supply but also the labor market.

The growth of the investment pipeline creates opportunities. However, the real commercial success of new supply will depend on the convergence of the right location, the right segment, sufficient demand, and strong operations within the same project.