Market reports

 

10/10/2011

Western Europe | Hotels

Property Report H1 2011

The recovery observed in 2010 goes on - October 2011

With almost € 7bn invested in H1 2011 on a rolling year basis, the investment activity in hotel real estate continues to pick up in the five top European countries.

At the same time, the activity in the hotel sector in Europe remained strong and confirmed the recovery initiated at the beginning of 2010 with all countries reporting increases in RevPAR between H1 2011 and H1 2010.

 

Hotel investment activity continues to gain momentum…

- Volume totalled up to € 2.5bn in H1 2011, increasing by 29% compared to H1 2010

- Key getaway cities that recorded high RevPAR (revenue per available room) and significant progression of RevPAR continue to be a focus for investors

- Totally absent in 2009, portfolio transactions represented 35% in volume in H1 2011

 

…thanks to the strong fundamentals of the hotel sector

- All three performance indicators showed growth in H1 2011 in all five countries

- Occupancy rates remained way down on 2007 records

- RevPAR in French and German hotels in 2011 should exceed those reached in 2007

- Germany realised the fastest recovery in Europe

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Pineau Christophe

Christophe Pineau
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