Following a slow start, hotel investment activity surged in the second half of 2023, exceeding €1 Bn (+74% vs H2 2022). Total investment volumes for 2023 amounted to €1.5 billion (+1% vs 2022), reaffirming hospitality as a leading sector in the Italian real estate market. Key transactions included the acquisitions of Six Senses Rome, Aermont Pellicano Portfolio, and the sale of Blackstone’s 35% stake in HIP.
Spain was the most active hotel investment market in Europe, with €4.2Bn transacted during 2023, a 44% increase relative to 2022. Portfolio dealsrepresented more than half of 2023 volume, among which are the sale of Blackstone’s 35% stakes in HIP to GIC (63 properties out of 77 in Spain) andPortfolio Equity Inmuebles to ADIA (17 hotels). Sovereign funds and other players with less reliance on debt drove the activity.
As temperatures gradually rise in February, European hotel performances are following a similar trajectory. After a lackluster January, activity is back to its 2023 level, and well above 2022 levels. While the continent is performing relatively well, Southern Europe seems to be standing out once again, with a climate that is attracting sun-seeking travelers. Nevertheless, several Northern European countries, such as the United Kingdom and the Netherlands, are performing well.
In 2023, Greece's tourism sector flourished significantly, witnessing remarkable growth in total international arrivals, which surged by approximately 17.6% compared to 2022, as reported by the Bank of Greece, but also 4.4% higher than the pre-Covid record of 31.3 million in 2019. Moreover, the promising trend extended to the employment landscape, with unemployment rates plummeting first time since 2009 in single digit. Additionally, statistics from the Hellenic Statistical Authority (ELSTAT) reveal that turnover within the hospitality industry amounted to a substantial €10.8 billion for the period spanning January to December, which is 10.7% higher than last year. Given Greece's strong historical performance in tourism, it's anticipated that 2024 will set a new record, with tourism revenue nearing €22 billion. The surge in arrivals at Athens International Airport, reaching 95% of capacity in April 2023 and maxing out during the summer, has triggered the 33MAP expansion plan. This plan involves expanding the terminal by 81,000 square meters to accommodate 33 million passengers annually, with financing already secured. Completion is slated for 2028, while projections suggest that within the decade, the 40MAP expansion may be triggered, necessitating an increase in capacity to 40 million passengers per year.
Our latest Ireland Hospitality Marketbeat shows that from an economic perspective, the outlook for the hotel sector remains positive – the latest Irish labor market data show an all-time high employment of 2.66 million across the economy while average weekly earnings grew by 4.6% compared to the same period in 2022, both of which supports the leisure spending outlook.
Cushman & Wakefield recorded a total transaction volume of EUR 1.5 billion for the hotel segment in 2023. This corresponds to a decline of around 23 percent compared to the previous year and is the lowest result of the past eleven years, falling short of the 10-year average by around 60 percent. The purchases and sales were almost exclusively individual property transactions, with an average volume of around 20 million euros.
This article examines Florence's tourism industry resilience amidst crises, including the COVID-19 pandemic, analyzing key performance indicators such as airport statistics, hotel supply, and operating performance. Despite setbacks, Florence witnessed a remarkable recovery, notably in 2023, with record-breaking Revenue Per Available Room (RevPAR). The analysis also highlights investment trends and future challenges, including concerns about over-tourism and evolving market dynamics.
The latest data from Fourth, the leader in workforce and inventory management technology for the hospitality and retail industries, has revealed a much-needed improvement in festive trading across the sector in Q4 2023, with net sales revenue growth of +6.1% compared to the same period in 2022.
Brown Hotels on Tuesday announced franchise agreements with hospitality giant Hilton, which sees two of its “Isla Brown” hotels in Greece entering the “Curio Collection by Hilton” brand.
The impact of sporting events on hotel performance has been well-documented recently. Now all eyes are on the Summer Olympics in Paris between 26 July-11 August 2024. This summer will mark exactly 100 years since the Summer Olympics were last held in France.
Helped by the holiday travel season, London hotels posted significant performance levels, according to preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets.
The real estate services firm’s annual hotel operator survey saw international and regional hotel operators – all of which are active in France – give their views on sector opportunities and challenges in the market.
Madrid’s hotel average daily rate (ADR) and revenue per available room (RevPAR) reached the highest monthly levels on record, according to October 2023 preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets.
This newsletter provides a snapshot of the performance and outlook of the Greek hotel industry, within the broader context of the international hospitality industry as well as of Greek tourism and Greek socio-economic developments.
With the summer travel surge concluded, London’s hotel industry showed more normalized levels of growth, according to preliminary September 2023 data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets.
The latest figures released by the Federal Statistical Office (FSO) have put even more spring in Swiss tourism’s step. Night stays in Switzerland for the months of June and July 2023 were recently published. And the news is good! Night stays (or hotel stays) were 8.6% higher in June 2023 versus June 2023. This confirms an earlier report indicating that in the first half of 2023, night stays increased 13.8% year on year.
Dalata Hotel Group plc (“Dalata” or “the Group”), announces that it has agreed contracts with Zien Group, to acquire the entire issued share capital of American Hotel Exploitatie BV (“the company”), which holds the operational lease of the Hard Rock Hotel Amsterdam American.
Amsterdam’s hotel industry showed event-driven improvement in monthly performance, according to preliminary August 2023 data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
Prague is the second most attractive market in CEE for hotel operators with a presence or interest in the region. Its popularity is backed up by H1 being a period of healthy recovery for Prague hotels which achieved the second-highest (after Budapest) RevPAR (revenue per available room) among the region’s capitals1. In this year’s first six months, it reached EUR 69, which is an increase of 57% versus H1 2022, and already a 5% increase versus the pre-Covid H1 2019. This was primarily driven by the strong ADR (average daily rate) growth, which surpassed 2019 levels by over 20%. Hotel operators are optimistic about the industry’s outlook and keen to expand across the CEE region. However, 28% of planned hotel projects in the region are facing delays or put on hold, mainly due to the increased development costs.