The second half of 2021 brought us boosters, a delayed Olympic Games, Omicron, clear signs of improving trading conditions within our wonderful hotel sector and fast rising levels of inflation across various aspects of our industry (including salaries, utilities, food stuffs and ADRs). What an exciting six months it was. The next six months will see even more excitement: high inflation (5.1% already in January in Eurozone), more open skies, fewer C19 regulations and more people spending pent up savings on having a good time and holidaying.

HotStats data clearly shows the recovery that is underway, with only two Growth matrices showing negative results (ADR and RevPAR in Muscat). All other markets and growth matrices are in encouragingly positive territory. Star performers included: Istanbul +60% growth in ADR and +189% in RevPAR; Rome +109% in occupancy; and London with a stellar 2,713% increase in GOPPAR. May the good times roll!

All through the pandemic, hotel developments have continued to be realised and with signs of recovery at an operating level, the pressure on construction inflation is likely to remain material, especially as post-C19 supply chain issues continue to unwind and resolve themselves.

Lots of deals were concluded in H2 2021, with Spain and Portugal being particularly busy from a value perspective. Regional UK had the highest number of deals, but their overall value was somewhat restrained as most deals were small individual asset transactions.

London with a stellar 2,713% increase in GOPPAR. May the good times roll!

With grateful thanks to our contributing valuers, we are pleased to present our eighth consecutive annual Consensus Yield Matrix as our back page feature.

About WhiteBridge Hospitality

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.

Philip Camble
Director
+44 20 7195 1482
Whitebridge Hospitality

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