The level of investment in European hotels across five core markets - France, Germany, Spain, the UK and Italy - increased during the first half of this year, new research shows. A report published by BNP Paribas Real Estate noted that activity in the sector was up by 29 per cent compared to the same period in 2010, with investment volumes standing at 2.5 billion euros (GBP 2.2 billion). In addition, every country surveyed recorded a rise in revenue per available room (RevPAR) during the same timeframe.
According to the organisation, investors are attracted to cities with high RevPAR, which resulted in Paris, London, Frankfurt and Barcelona being particular targets. Meanwhile, the UK hotel sector as a whole attracted the greatest level of investment, taking a 42 per cent share of all the funds ploughed into the industry during the first six months of 2011. The French and German markets also performed well, with the latter making a "strong recovery". However, Italy and Spain suffered from low activity levels, although Spain's market is expected to pick up slightly before the year is out.
PricewaterhouseCoopers predicted last month that 2012 will be another strong year for London's hotel sector; although the firm stressed that the third quarter of the year is the most important. In addition to the Olympic Games, the organisation cited the Farnborough Air Show and the Diamond Jubilee celebrations as other events that are likely to boost the performance of businesses in the hospitality sector.
- Monday 24 October 2011