Western Europe | Hotels

Property Report - H1 2013

H1 2013: hotels arouse investors interest - September 2013

At € 8.4 billion invested in 2013 on a rolling year basis, the hotel investment volume in France, Germany, Italy, Spain and the UK rallied, 23% up on 2012.

Hotel investment remains a two-tier market; quality hotels in key getaway cities on one side and the poorly performing hotels that are finding no takers on the other.


The investment activity remains focused on the prime market

- The United Kingdom remained the most liquid hotel investment market.

- Transaction activity fuelled by portfolio deals in Q1 and single assets during Q2

- Given the current investment activity and the improvement in financing conditions, 2013 should exceed 2012 results.


Sustained performance on the hotel occupancy side

- Except a slight fall of the French RevPAR, German, UK and French hotels retained strong fundamentals.

- Italian hotels stood out with a 3.5% rise of their RevPAR and one of the highest average daily rates in Europe during H1 2013.

- Spanish hotel performance deteriorated over H1 2013, weighed down by a sluggish domestic tourism.

- Despite discrepancies amongst the different markets, RevPAR growth at the end of 2013 will be moderate in Western Europe.

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Richard Malle
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