European Hotel Industry Survey

November 2019

Every year, attendees of the Deloitte European Hotel Industry Conference take part in our delegate survey. The 2019 findings reveal the top investment cities in Europe and the UK, and the key challenges for the hotel industry.

Focus on Europe
For the fourth year in a row Amsterdam continues to be the most attractive European city for hotel investment in 2020. This year Paris takes 2nd place while London falls to 3rd position.

Industry concerns
In Europe a lack of economic growth and political tension are the biggest risks to hospitality sector. Brexit still makes it into the top 3. Similarly, lack of economic growth, Brexit but also the shortage of a skilled workforce are seen to be the biggest risks for the UK hospitality sector.

Expectations for growth
Overall, there is positive growth expected for London however profitability is expected to be under pressure in 2020 as over half expect revenue (RevPAR) to grow by 1-3% in 2020, while 57% expect profitability growth (GOPPAR) to be flat or negative in 2020.

Major industry trends
31% believe hotels will be the most attractive asset class for investment in 2020 due to their positive demand fundamentals (71%) and yield profile (46%).

About the research
Over 110 senior hospitality figures from across the world, including owners, lenders, developers and investors answered a series of questions on the European hotel industry market to ascertain their views of key trends and how these will shape the industry in 2020 and beyond.

Top ten most attractive European cities for hotel investment in 2020

Amsterdam remains the most attractive European city for hotel investment in 2020; Paris replaced London to become the second most attractive European city for hotel investment

To discuss any of the key findings further, please contact us.

Did you find this useful?