News

Hospitality markets in 2023: what to expect?

The hospitality industry experienced many highs and lows across 2022 and as a sector, faced challenges including recovery from the pandemic, the impact of Russia’s invasion on Ukraine and the ongoing cost-of-living and energy crisis, the instability of government on the economy and rising interest rates. The sector has tried to remain resilient, in the knowledge some of these obstacles are continuing this year and will shape the outlook of the market as we progress further into 2023.

By Lionel Benjamin, Co-Founder, AGO Hotels

United Kingdom

Aprirose acquires Travelodge in Whetstone, London

Aprirose, the real estate investment company, has acquired the freehold of an asset in Whetstone for an undisclosed price. The property is let to Travelodge with 18 years remaining on the lease.

Aprirose

London, United Kingdom

OYO UK doubles its revenues from pre pandemic levels

Global travel technology company, OYO’s UK operations saw a 140% uplift in revenue or Gross Booking Value (GBV) in 2022, surpassing pre-pandemic levels of 2019. London emerged as the best performing market showing strong Y-o-Y growth followed by other regions such as Brighton, Cornwall, Great Yarmouth, Devon, Portsmouth, Plymouth, and the Midlands.

PRISM (formerly Oravel Stays Ltd.)

United Kingdom

Hotel Market Beat 2022 - Germany

In 2022, German hotel investment volumes reached €2.0bn. This was 20% below the previous year and 42% short of the 10-year average. Transaction activity has been impacted by the rising cost of debt, inflation, recession fears as well as uncertainty around hotel pricing. Looking forward, investment activity is expected to gain more momentum in the second half of 2023, supported by a continued recovery of the operating markets.

Cushman & Wakefield

Germany

Vienna Hotel Market - Promising Prospects For Another Success Story

Tourist demand in Vienna experienced a significant recovery. While international travel restrictions still had a diminishing effect on tourist demand in the Vienna hotel market in the first half of 2022, there were clear signs of improvement in the second half of the year. A market report by hotel specialist Christie & Co provides insights into supply and demand, and shows which hotel categories have come through the crisis best.

Christie and Co.

Vienna, Austria

STR: Madrid hotel industry reported higher performance in February

Aligned with historical trends for the market, Madrid’s hotel industry reported higher performance from the month prior, according to preliminary February 2023 data from STR.

CoStar

Madrid, Spain

Hotel Market Beat 2022 - Italy

The second half of 2022 saw transaction activity hampered as a result of rising costs of debt and economic instability. Transaction volumes declined by 32% compared to H1 2022, resulting in a yearly volume 15% lower than in 2021. Looking forward, we expect a slow start in 2023, with an uptick in transaction activity within the second half of the year, underpinned by rising investor interest and a healthy deal pipeline.

Cushman & Wakefield

Italy

Momentum continues for UK hotel investment in 2023

Following the turbulence of 2022, which disrupted the hotel sector’s recovery from the pandemic, 2023 welcomes a more settled investment market, according to the latest research from leading global property adviser Knight Frank.

Knight Frank

United Kingdom

Post-Pandemic Business Travel Stimulating UK Economic Growth Despite Hybrid Working Concerns, New Study Shows

The Business Travel Association (BTA) today publishes a new report based on analysis from CBI Economics, detailing the value business travel provides to the UK economy.

BTA (Business Travel Association)

United Kingdom

onefinestay Launches Luxury Villa Collection in Provence, France

onefinestay, the world’s leading luxury private rental brand, is delighted to launch its latest collection of stunning homes in the beautiful region of Provence, France. The collection offers a striking range of villas, all fully furnished, to the brand’s impeccable level of luxury. The introduction to onefinestay adds a further destination to the brand’s ever-expanding array of homes in France, already including Paris, Cannes, St Tropez, as well as other sought-after destinations in southern Europe including Italy, Spain and Greece. The Cote D’Azur’s prime location, Provence, offers everything from cultural and historic sites to beautiful vistas of rolling lavender fields and vineyards, and the perfect central spot to discover the south of France.

Accor

France

Hotel Market Beat - Greater Paris

The hotel transaction volume in Greater Paris reached €1.9Bn during 2022. This was 300% above 2021 but also 7% above 2019 level. The key driver were several major transactions in prime locations, with price per room exceeding €1M. Examples of landmark deals in 2022 include The Hoxton, and the Locke Paris.

Cushman & Wakefield

France

Christie & Co Shows How the Hotel Sector in Finland Recovered from the Pandemic: a Trilateral Perspective

In its latest analysis of the Finnish hotel market, hotel real estate expert Christie & Co shed light on how Finland as a whole, its capital region and key provincial markets have fared in 2022 compared to 2019.

Christie and Co.

Finland

Before Deadly Earthquakes, Turkey's Hotel Industry Seemed Quite Healthy

The devastating 7.8- and 7.5-magnitude earthquakes that hit southeastern Turkey near Syria on Feb. 6 have killed more than 36,000 people, and the death toll continues to rise. The earthquakes hit predominantly residential, non-tourist areas of Turkey, but came at a time when the country's hotel industry appeared to be fully recovered from the global pandemic.

HotelNewsNow

Turkey

Amsterdam hotels showed typical seasonal slowing in January

In its first January without restrictions since 2020, Amsterdam hotel performance showed a typical season slowing from the months prior, according to preliminary January 2023 data from STR.

CoStar

Amsterdam, The Netherlands

OYO back to expansion in UK, adds 40 hotels and doubles revenue in 2022

Global travel technology company, OYO’s UK operations announced that it has added 40 hotels to its platform and doubled its revenue in 2022 vs 2021. OYO’s network hotels also saw a 50% jump in revenue per available room (RevPar) vs 2021 and a 110% jump in revenue per available room vs Covid (2020).

PRISM (formerly Oravel Stays Ltd.)

United Kingdom

Poland Hotels & Chains Report 2023

A very warm welcome to this latest edition of the Horwath HTL Poland Hotels and Chains report.

Horwath HTL

Poland

Performance Greek Hospitality Industry Performance Q4 2022

• International arrivals in Greece declined 11% up to November 2022 compared to same period in 2019. This is mainly due to a significant drop in road arrivals, which represented 31% of all international arrivals in 2019. International arrivals at Greek airports decreased by just 1% 2022/19 due to a very strong summer season.
• International receipts dropped 1% in 2022/19 YTD November. For the entire year of 2022 it is expected that Greece attracted a total of nearly 28 international tourists spending € 17.5 billion.
• Based on available data up to October for all displayed Mediterranean countries, international arrivals dropped 15.8% in 2022 compared to 2019. The largest decline was recorded in Italy with a drop of 26% followed by France with 22%. Turkey showed the best performance with a decrease of international arrivals of just 3% during the reviewed period.
• As a result, based on the 2022 performance Turkey outperformed its competitors and gained market share just like Portugal, Croatia and Greece. Italy and France were the worst performers, while Spain despite the drop of 17% in international arrivals 2022/19 YTD October maintained its market share. 

GBR Consulting

Greece

UK Hotel Market Beat

The second half of 2022 saw transaction activity hampered as a result of rising costs of debt and economic instability in the UK and Global markets. Looking forward, we expect transaction volumes to see a slow start in 2023, with an uptick in activity within the second half of the year. Hotels remain an effective hedge against inflation which, combined with the return of international capital and pricing consensus, should support activity within the sector.

Cushman & Wakefield

United Kingdom

Hotel Investment Market Austria: Recovery Noticeable Despite New Challenges

After an initially good start to 2022, the ongoing war in Ukraine and its consequences caused renewed unrest on the Austrian hotel investment market. Which buyer group was nevertheless active, and what domestic banks say about the current financing landscape, you can read in the latest transaction market report from hotel real estate specialist Christie & Co.

Christie and Co.

Austria

Will 2023 be the time to ‘check in’ to UK hotels?

I think most of us in the UK hotel investment market will look back to early 2022 and recall positive sentiment for the year ahead and a sense of light at the end of the tunnel. In reality, the year brought in a number of headwinds for the sector; but with 2023 ahead of us could there be a glimmer of change on the horizon?

Cushman & Wakefield

United Kingdom