Whitebridge EMEA Hotels Monitor, Issue 28
The first half of 2021 will no doubt be remembered for the commencement of vaccine roll outs (led by Israel and the UK), traffic light systems for international travel, economicbounces and non-existent VIP lanes. Looking forward there is definite hope for the second half of the year and for 2022. Indeed recent IATA Economics projections indicatethat passenger numbers could reach 88% of 2019 levels by 2022 and exceed 2019 by 2023.
The first half of 2021 will no doubt be remembered for the commencement of vaccine roll outs (led by Israel and the UK), traffic light systems for international travel, economic
bounces and non-existent VIP lanes. Looking forward there is definite hope for the second half of the year and for 2022. Indeed recent IATA Economics projections indicate
that passenger numbers could reach 88% of 2019 levels by 2022 and exceed 2019 by 2023. Thus, projections that some hotel markets could start to hit 2019 numbers again
by 2024 could well become reality. Fingers crossed that vaccine roll outs pick up around the world and that IATA is proved right.
Performance trends have varied beyond imagining across the region. Changes in RevPAR ranged from a high of +92.6% in Istanbul to a low of -75% in Amsterdam, whilst in GOPPAR, from a whopping ‘Virgin Galactic’ high of +3,803% in Warsaw to a painfully ‘Mariana Trench’ low of -23,345% in Madrid. Dubai showed clear signs of recovery after managing its pandemic with aplomb (+53.7%), whilst London was still struggling under its traffic lights (-158.2%).
Europe as the only region in the world to record an increase in rooms under construction and ongoing supply chain disruption are resulting in persistent development cost inflation.
Transactions have picked up tremendously and, hurray, we have a full table again. With UK and Spain leading the way, a broad range of markets have been active, including in Africa and the Middle East (where deals are rare).
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Whitebridge Hospitality is a specialist advisor to investors, developers and operators in the hospitality industry around the globe. We provide investment, operational and planning advice, and guidance in respect of the entire hospitality spectrum, including: hotels, mixed-use developments, conference and exhibition centres, spas, leisure facilities, casinos, visitor attractions and sporting venues. Our uniquely qualified team can provide services throughout an asset's life cycle, from site selection and acquisition, through master planning and feasibility studies, to operator selection, operational and asset strategy advice, to sale and agency services.