Opinion Articles

HVS Market Pulse: Croatia

Croatia is a unitary democratic parliamentary republic at the crossroads of Central Europe, Southeast Europe, and the Mediterranean. Its capital city is Zagreb. Croatia covers 56,594 km² and has a diverse mostly continental and Mediterranean climate. Its 1,244 islands and reefs are a distinguishing symbol of Croatian tourism and a comparative advantage in its development. Due to such natural assets, nautical tourism is an especially valuable and successful segment of Croatian tourism and presents an pportunity for investors to venture into this highend market, which is still ignificantly underdeveloped. The country's population is 4.26 million.

By Nikolas Pavlidis, Consulting & Valuation Consultant at HVS Greece, HVS

Croatia

Germany - The Investor's Darling?

Compared to the vast majority of European countries, Germany's economy has boasted a strong performance over the past two to three years, both on an economic level and on a hotel performance level. Economic output has been showing above-average growth, despite the ongoing Eurozone debt crisis, which has led to a fundamental change in Germany's economic positioning within Europe over the past ten years. While the Federal Republic is today regarded as a supporting pillar and engine of growth for the Eurozone, it was still characterised as the 'sick man of Europe' a few years ago, owing to its low macroeconomic growth, which was considered to be a risk to those countries in the Eurozone.

Given this strong performance, it is not surprising that Germany continues to be everybody's darling. This article gives an overview of the latest hotel real estate trends in Germany by focusing on the top four performers since the onset of the crisis, touches on the booming hotel investment market and lastly gives an indication of the movement of hotel values.

By Arlett Oehmichen, Director with HVS’s London office, HVS

Germany

HVS In Focus: Golf Resort Investment – Doing the Rounds

This article will be of interest to stakeholders in new golf resort developments as well as existing schemes as we focus on transactions across Europe since 2008, which demonstrate a structural change in the ownership market.

The recent sale of Surrey's Wentworth Club to the Chinese Reignwood Group and other recent activity appears to have marked the start of an economic recovery, as investors make positive moves to enter and re-enter the volatile golf hotel market. Following a period of inactivity and bouyed by reduced unemployment and the prospect of real wage increases, with over €386 million of single asset investment in 2014 alone, attention has turned to businesses centred around a key golf attraction that also provide multiple revenue streams and future development potential.

By Harry Douglass, Senior Associate with HVS London, HVS

United Kingdom

Things you need to consider when choosing to work with a hotel brand | Interview with Hugh Taylor OBE

With brands growing ever more dominant in the European hotel market, we talk to hotel management expert Hugh Taylor from Michels & Taylor about creating a hotel brand contract which lasts.

By Hugh Taylor, Chief Executive, Michels & Taylor (London) Ltd

London, United Kingdom

HVS In Focus: London Luxury Hotels - Can the Market Rise Forever?

London's luxury hotels are amongst the most prestigious in the world and are the darlings of the hotel investment community. Market performance has gone from strength to strength over recent years. London continues to benefit from steady demand from leisure and business guests alike. It has been placed in the spotlight even more since hosting the Olympics in 2012. However, with the various proposed additions to London's luxury segment, will the market be able to absorb and continue to grow at the same pace? HVS presents a study of the London luxury hotel market and answers the question by examining its hotel demand and supply characteristics, as well as investment market.

By Luisa Pott

London, United Kingdom

HVS In Focus - Mykonos and Santorini, Greece

This article summarizes the performance of two of the most important Greek island tourism destinations. Until recently, Greece had a strong advantage in that it was considered to be a stable country showing a relative resilience as a tourist destination towards major global events. Since 2009 though, the negative publicity stemming from the rumours regarding the potential bankruptcy of Greece and the historically largest bail‐out implemented by the IMF in order to avoid this situation, led to a socio‐political and economic turbulence which generated significant fluctuations in tourist arrivals during 2009‐12...

By Pavlos Papadimitriou, Director with the Athens Office, HVS

Greece

Paris: Speculation and parasite-like practices

The success of the luxury hotel sector in Paris does not bring about only good wishes. This market remains dominated by a major characteristic, which is the depletion that has been taking place for years. The construction of new hotels has unleashed much interest, because of the arrival of new brands in the French capital, but at the end of the day, the extra supply is marginal. It has shrunken even more because of the major construction that is going to hijack a good portion of a supply that has waited too long to renovate.

By Georges Panayotis, President & Founder of MKG Group & Hospitality ON, Hospitality ON

France

Hotel Development Bottlenecks in Russia

As investors are looking to get into Russian hotel markets, they will no doubt be cautious. Hotel development can be quite a complex process. What are the main bottlenecks potential investors could face when developing hotels in Russia?

By Alexey Korobkin

Russian Federation

The Savoy: under pressure as competition intensifies

“There will be a huge interest in The Savoy from people keen to experience and see the result of this refurbishment, so bookings will be strong into Christmas. And guests won’t be disappointed. The hotel has been restored to its former glory - what was needed to be done has been done. What remains to be seen is how Fairmont can drive and maintain business at an average room rate the hotel was never able to operate at previously.

By Russell Kett, Chairman at HVS - London Office, HVS

London, United Kingdom