World Panel
Viewpoint11 February 2020

2020 Hotel Transactions and RevPAR

Hotel Ownership, Development and Management

— 10 experts shared their view

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This viewpoint was created by
Demian Hodari, Associate Professor of Strategic Management at the Ecole Hôtelière Lausanne (EHL)
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Peter Szabo
Senior Associate at HVS Hodges Ward Elliott

In terms of European hotel transaction levels, I am not as bullish as the majority of the panel on the volume of deals exceeding that of 2019. Although investor interest remains high (in spite of mixed RevPAR growth across the continent), there is a strengthening mismatch between the amount of capital looking for investment opportunities and the number of suitable investments. Largely driven by the shift in European hotel ownership towards longer term, institutional investors in recent years, this lack of available stock in my mind may hold back transaction levels in 2020. This same mismatch combined with continued cheap debt will likely result in further yield compression in the near future.

Considering the panel's gloomier outlook on US RevPAR performance combined with an election year, which region do panellists see global transaction growth being fuelled from? 

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