European Hotel Investment Survey

Heading into thin air?

November 2017

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.

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%).

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%).

New towns to have investment boost
For the fourth consecutive year, almost half of the respondents identified Edinburgh as the most attractive hotel investment destination in the UK outside of London in 2018. Manchester (39%) retained second-place, with the university towns Cambridge (30%), Oxford (29%) and Bath (13%) completing the top five.

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.

About the research

Over 90 senior hospitality figures from across the world, including owners, lenders, developers and investors answered a series of questions on the European hotel investment market to ascertain their views of key trends and how these will shape the industry in 2018 and beyond.

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