European Hotel Investment Overview

Spotlight on Ireland

Each year, attendees of the Deloitte European Hotel Investment Conference take part in our industry survey which focuses on the UK and wider European market.

We have shared some of the survey findings here, as well as local statistics on the Irish hotel and tourism market.

Focus on Europe

Amsterdam has retained its position as the most attractive hotel investment destination in Europe, with almost a third (32%) of respondents ranking the Dutch capital in the top spot. Barcelona (25%) and Dublin (25%) followed, while last year’s second-place city, London, slipped to fourth (23%).

Spotlight on Ireland

  • The Irish tourism industry is currently estimated to be worth a record 8.7 billion euro annually. In 2017 Ireland earned an estimated 6.5 billion euro from overseas tourism. 
  • Dublin currently has a stock of c. 19,000 hotel bedrooms. Construction projects underway or in planning 3,000 rooms in Dublin by 2020, a 15% increase in total stock.
  • There were 500 million euro worth of transactions in the sector in 2017.
  • The government have kept the 9% VAT rate for hotel related activities, which has added to the attractiveness of the sector. 

Industry concerns

More than two-thirds (67%) of hotel investors said that terrorism was the main risk to the European hotel industry over the next five years, followed by lack of economic growth (50%) and black or grey swans (28%).

Expectations for growth

According to the survey, hotel investors are broadly optimistic about 2018 growth prospects in the Regional UK hotel market, with the majority of respondents expecting RevPAR growth to be between 1-3%. However, when asked about 2018 expectations for gross operating profit per available room (GOPPAR), respondents were more pessimistic.

Millennials to drive business

Looking to wider industry trends, almost a third (32%) of hotel investors expect millennials to drive business for the hotel and leisure sector over the next five years.

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