TOP STORY Overall hotel investment volumes in Europe decrease LATEST NEWS FEATURES VIDEOS
Editor's comment 06/11/2019
Are we at the peak of the hotel performance and investment cycle?
It’s a question that is vexing many at the moment, and if you ask 100 people in the industry you’ll get nearly that number of subtly different answers.
According to a new report from CBRE, total hotel investment in Europe reached €23.3 billion in Q3 of 2019 - a decrease of 30.6 per cent on the same period last year. But scratching the surface of that figure, CBRE director Paul Kapiris, said: "Despite the overall decline in European hotel investment volumes, investor interest remains strong, particularly in Spain, Italy and the Netherlands. The lower number of large deals have contributed to this fall in volume, however we are seeing increased interest in resort markets as they are now proving attractive to more traditionally conservative capital, who have become more comfortable with leisure markets in their hunt for higher returns.”
And at today’s Deloitte European Hotel Investment Conference in London, the general consensus is that we are near the top, but there may be a year or two to go before we get there. Credit Suisse managing director Steffen Doyle says we could be at a false peak and thinks we may see strong performance over the next 24 months, and he predicted at least one major consolidation deal during that time.
The industry is being buffeted by competing headwinds and tailwinds of similar velocity but the general mood in the investment community appears to be relatively upbeat.
George Sell, editor
Katie Houghton
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