European Hospitality Report
Where and how to invest in the European hotel business in 2019?
Revenues are clearly on the rise, and growth is accelerating: the hotel industry has a green light overall in Europe. It is therefore a good time to invest or develop, especially as the general prospects are (finally) more favourable in Europe.
But a word of caution: the dynamics and phases of the cycle are not all the same across the board. While some markets are experiencing strong rebounds in occupancy, others have already entered a phase of price increases; still others are going through an air pocket. While some have barely regained their activity levels from 2007, others did so some time ago and are now seeing their supply develop. Strategies must therefore be adjusted accordingly. Also, local realities in the major cities are of course not always the same as those in the countryside. Would you have guessed, for example, that RevPAR fell last year in Munich, Rome or Montpellier?
Revenues are clearly on the rise, and growth is accelerating: the hotel industry has a green light overall in Europe. It is therefore a good time to invest or develop, especially as the general prospects are (finally) more favourable in Europe.
But a word of caution: the dynamics and phases of the cycle are not all the same across the board. While some markets are experiencing strong rebounds in occupancy, others have already entered a phase of price increases; still others are going through an air pocket. While some have barely regained their activity levels from 2007, others did so some time ago and are now seeing their supply develop. Strategies must therefore be adjusted accordingly. Also, local realities in the major cities are of course not always the same as those in the countryside. Would you have guessed, for example, that RevPAR fell last year in Munich, Rome or Montpellier?