sophie perret
European Hotel Transaction Volumes Increased by 123% in the First Half of 2024
Maxime Gauthier | October 10, 2024
Coming out of a high-inflation, high-interest-rate environment, which negatively impacted hotel transactions in Europe in 2023, transaction activity increased to the highest levels since 2019 in the first half of 2024. Reaching €10.6 billion, the total volume transacted increased by 123% year-on-year, already reaching the total volume for the whole of 2023. There were 20% more transactions this semester, with a decrease of 11% in the number of rooms per hotel, translating into a 30% increase in price per room over H1 2023. General Commentary Transaction volumes were quite evenly spread over the semester, with January...
European Hotel Values See Modest Rise in 2023 but Fail to Reach Pre-Pandemic Levels, Reveals Latest HVS Valuation Index
HVS | March 11, 2024
11 March 2024, London: Hotel values across Europe remained steady in 2023 buoyed by the consolidation of the post-pandemic recovery and a steady desire to travel keeping average room rates strong, according to the annual European Hotel Valuation Index (HVI) published this week by global hotel consultancy HVS. These influences combined to offset the impact of a number of geopolitical challenges including the war in Ukraine, the war between Israel and Hamas and the shaky Chinese economy as well as increasing operating costs and high interest rates. The result was a modest uplift in hotel values of around 1% across Europe keeping them...
HVS Global Hotel Industry: 2023 Recap and 2024 Outlook
HVS | December 5, 2023
As 2023 draws to a close, regional HVS leaders across the globe take a look back at how the global hotel industry fared this year and opine on the outlook for next year. While the U.S. experienced muted 2023 RevPAR growth relative to 2022 gains, most other global markets recorded extraordinary RevPAR growth, well above 10%, primarily fueled by strong ADR gains. While transaction activity cooled across the Americas and Europe, the Asia Pacific saw a significant strengthening as this region’s markets moved beyond pandemic-era restrictions. United States By Rod Clough, President – Americas As 2023 ends, we look back on a year where hot...
European Hotel Values Rise 3% in 2022 in What Proved a Mixed Year for the Sector
March 23, 2023
Hotel values across Europe rose around 3% in 2022 with Paris, London, Zürich, Amsterdam and Rome remaining those with the highest valued hotels, according to our annual European Hotel Valuation Index (HVI) published this week. During 2022, hotel values benefitted from a number of factors including strong improvement in RevPAR and the recovery of ancillary revenues. Despite this, high inflation, an increasing cost of debt and the looming threat of recession limited the recovery of values, leaving them below their 2019 peak. ‘The pandemic year of 2020 witnessed hotel values plummet by around 15%, although they rallied by around 5...
Can Hotel ADRs Overcome High Inflation?
Shaffer Patrick | November 28, 2022
By Shaffer Patrick, Sophie Perret Many global economies are going through a period of high inflation, brought on by macroeconomic factors such as government stimulus and global supply shocks. We have asked the questions: can rising costs be passed along to the consumer and what does the current inflation environment say about hotel pricing over the next few years? We have used London as a case study to understand the relationship between inflation and hotel ADRs (average daily rates). We analysed trends over the long term (1973-2022) as well as over specific periods of economic prosperity and strife to draw conclusions about what the...
Paris Hotel Market: A Spectacular Start to the Recovery
Mathilde De Bona | June 8, 2022
By Mathilde De Bona, Sophie Perret Tourism in Paris was heavily impacted by the COVID-19 pandemic and travel restrictions, at a time when the market was recovering from terrorist attacks (2015/16), the yellow-vest movement (2018/19) and transportation strikes (2019). However, the strong government support combined with the city’s worldwide appeal have resulted in a dynamic rebound for the tourism sector. The easing of travel restrictions and successful vaccination rollout in France and across Europe have allowed a rise in tourist numbers from June 2021, resulting in a substantial market bounce in the second half of the year, in line with...
Recovery From Covid-19 in Spain
Sophie Perret | April 7, 2020
By Sophie Perret Half of all global tourism arrivals historically come to Europe; and, within Europe, Spain enjoys a disproportionate share of this visitation, with more than 80 million visiting the country yearly. Whilst the COVID-19 pandemic ravages Europe and takes a particularly heavy toll in Spain, it is important to evaluate how the reliance of this country on international visitation might shape the recovery of its two main urban markets once the pandemic subsides. The reliance on international demand has historically allowed hotel markets to yield room rates to a greater extent than is the case when demand is mostly domestic. Fo...
Europe’s Hotels See Third Year of Value Rise, Reveals Annual HVS Report
HVS | February 26, 2020
26 February 2020, London: Hotel values across Europe gained a further 3% last year according to the annual European Hotel Valuation Index (HVI) compiled by global hotel consultancy HVS, marking the third year of increase for Europe’s hotel sector. Most of the cities in the survey showed a positive valuation performance in 2019, with 10 experiencing value swings of over 5%. Only six of the 33 markets tracked in the European HVI showed a value decline. The year saw increased momentum for hotels in Southern Europe, with an overall increase in values of 7% - up from 4% in 2018 – with all cities in the region showing a value rise. Easter...
