Turkey Becomes Europe's Second Largest Hotel Development Market

The hotel development activity in Turkey reached one of the highest levels in Europe in the second quarter of 2026. According to data from Lodging Econometrics reported by Turizm Güncel, Turkey is positioned as the second largest hotel development market in Europe, following the United Kingdom, with 156 projects and a total of 21,266 rooms.

However, it should not be interpreted that the figure of 156 refers to the "number of new hotels opening soon." The hotel development pipeline includes not only projects currently under construction but also those planned to start construction and those in the early planning stages.

With this distinction, the data shows not only the scale of hotel investment appetite in Turkey but also the potential changes in operations, employment, supply, and competition in the coming years.

Turkey Climbs from Third to Second Place in a Year

Turkey's rise in the European rankings has been ongoing for the last few quarters.

In the data from Lodging Econometrics for the second quarter of 2025, Turkey was in third place with 138 projects and 19,984 rooms, following the United Kingdom and Germany. In the first quarter of 2026, the number of projects reached 157, and the room capacity increased to 21,274, elevating Turkey to second place.

In the second quarter of 2026, Turkey maintained its second place with a pipeline of 156 projects and 21,266 rooms. According to Lodging Econometrics data reported by Turizm Güncel, the number of projects in Turkey increased by 13% year-on-year, while the number of rooms rose by 6%.

At the top of the list is the United Kingdom with 263 projects and 39,011 rooms. Germany is in third place with 146 projects and 24,821 rooms, France is fourth with 117 projects and 11,938 rooms, and Portugal is fifth with 115 projects and 13,915 rooms.

While Turkey is ahead of Germany in terms of the number of projects, it is noteworthy that Germany has a higher number of rooms. This difference indicates that the number of projects alone is not sufficient to evaluate the scale of investment.

Istanbul Also Ranks Second in Europe

A significant portion of the investment activity in Turkey is concentrated in Istanbul.

As of the second quarter of 2026, Istanbul's development pipeline includes 44 projects and 6,857 rooms. With this result, the city ranks second in Europe, following London, which has 70 projects and a pipeline of 12,912 rooms.

It is noted that the number of projects in Istanbul has increased by 8% compared to the same period last year, while the number of rooms has risen by 2%.

The city's high ranking is not new. In the Lodging Econometrics data, Istanbul also had the second largest city pipeline in Europe in the second quarter of 2025, with 49 projects and 7,779 rooms.

The decrease in the number of projects from 49 to 44 does not necessarily mean that investment is shrinking. As facilities within the pipeline open or project stages change, the total number also fluctuates.

Upper Segment Dominance Continues in Europe

Across Europe, in the second quarter of 2026, there are 1,736 hotel projects and 255,976 rooms in the development pipeline. The number of projects and rooms has increased by 3% year-on-year.

Of these projects, 773 are currently under construction, while 332 projects are planned to start construction within the next 12 months, and 631 projects are in the early planning stage.

The segment distribution also provides insight into which market areas investors are targeting. In the upscale category, there are 400 projects and 61,639 rooms, while the upper-midscale category has 306 projects and 43,622 rooms. Together, these two segments account for 41% of the projects in Europe.

In the upper-upscale category, there are 304 projects and 50,181 rooms, and in the luxury segment, there are 187 projects and 21,930 rooms in the development pipeline.

This data indicates that a significant portion of the new capacity in Europe is being shaped in the mid-upper and upper segments.

New Investments May Also Increase Supply and Workforce Demand

The growth in the hotel development pipeline's impact is not limited to new room capacity.

As a project approaches opening, it creates a need for purchases in many B2B areas such as furniture, kitchen equipment, textiles, technology, energy systems, cleaning products, food and beverage supply, and operational software.

On the human resources side, new hires are emerging in positions such as front office, housekeeping, kitchen, service, sales, revenue management, technical services, and management.

However, it should be noted that not all 156 projects will open simultaneously. Since a significant portion of the pipeline is in the planning stage, the demand for employment and supply will develop over time.

More Hotels Also Mean More Intense Competition

The growth in the investment pipeline should not be viewed as a purely positive indicator for the sector.

In destinations where new supply comes online, existing businesses may face more intense competition in terms of room pricing, finding employees, sales channels, and customer acquisition.

Especially in areas where hotels targeting the same segment and similar customer profiles are concentrated, the new room supply may occur faster than demand growth, putting pressure on occupancy and pricing.

On the employee side, a different outcome may emerge. New hotels may create more career and employer options for experienced staff, while increasing competition for businesses to attract and retain qualified employees.

Therefore, the growth of the investment pipeline is not only a matter of real estate and financing; it is also a direct part of the human resources strategy.

307 New Hotels Expected in Europe in 2026

According to the forecast reported by Lodging Econometrics, 112 hotels and 13,914 rooms opened across Europe in the first half of 2026. In the second half of the year, the opening of 195 hotels and 25,884 rooms is anticipated.

Thus, a total of 307 new hotels and 39,798 rooms are expected to open in 2026.

Forecasts indicate 303 hotels and 42,729 rooms in 2027, and 304 hotels and 43,099 rooms in 2028.

These figures also illustrate why the 1,736 projects in the current pipeline cannot be interpreted as "hotels opening in 2026." The development pipeline represents a much broader pool of projects spread over several years.

Stafflink's Perspective

Turkey's rise to second place in Europe's hotel development pipeline is a strong indicator of investor interest. However, the real question for the sector is not how many hotel projects exist, but in which destinations and segments this capacity will come online.

The increase in new investments may strengthen career mobility for employees. On the other hand, it may make access to experienced general managers, department heads, chefs, service professionals, technical staff, and housekeeping teams more competitive for businesses.

In our view, it is a significant operational risk if the human resources budget in investment plans is left behind physical investment. Instead of intense hiring a few months before opening, management teams should be established early, employee training should be planned, and local workforce capacity should be evaluated during the project phase.

The opportunity ahead for Turkey is not just to open more hotels; it will be to make the increased capacity manageable through sustainable demand, correct pricing, and qualified teams.