Lodging Econometrics 2011 EMEA Lodging Outlook Report
The sovereign debt crisis, budget cutbacks and rising inflation continue to weigh heavily on much of Europe and will keep economic growth subdued at least into 2012. Uncertainty is particularly high in Ireland, Spain, Portugal, and Italy. In the United Kingdom, an unexpected drop in GDP to -0.6% in Q4 2010 has triggered apprehensions about a double-dip recession.
The sovereign debt crisis, budget cutbacks and rising inflation continue to weigh heavily on much of Europe and will keep economic growth subdued at least into 2012. Uncertainty is particularly high in Ireland, Spain, Portugal, and Italy. In the United Kingdom, an unexpected drop in GDP to -0.6% in Q4 2010 has triggered apprehensions about a double-dip recession. Fears of increased energy and commodity prices in the wake of the recent turmoil in the Middle East and Northern Africa are impacting as well. Overall economic insecurity, combined with lackluster lodging operations, will continue to dampen developer sentiment.
Europe's Total Construction Pipeline, at 754 projects/123,714 rooms at the end of Q4, has been in a bottoming formation for seven consecutive quarters. New Project Announcements (NPAs) into the Pipeline remain in a low channel at 117 projects/14,058 rooms, and Construction Starts for projects already in the Pipeline, at 75 projects/9,492 rooms, are at their second lowest level reported in three years. As more budgetary reductions are enacted, construction financing still difficult to obtain and just modest improvements in lodging operations anticipated, these development metrics should decline further into 2012.
Europe's Total Construction Pipeline, at 754 projects/123,714 rooms at the end of Q4, has been in a bottoming formation for seven consecutive quarters. New Project Announcements (NPAs) into the Pipeline remain in a low channel at 117 projects/14,058 rooms, and Construction Starts for projects already in the Pipeline, at 75 projects/9,492 rooms, are at their second lowest level reported in three years. As more budgetary reductions are enacted, construction financing still difficult to obtain and just modest improvements in lodging operations anticipated, these development metrics should decline further into 2012.
About Lodging Econometrics (LE)
For over 25 years, Lodging Econometrics (LE) has been the industry-leading provider of global hotel intelligence and decision-maker contact information. LE custom-builds business development database programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. To learn more about our business development programs contact us: +1 603.431.8740, ext 0025 or [email protected].