Share:
facade of the top of high rise hotel, modern blue facade of the top of high rise hotel, modern blue

Europe Hospitality MarketBeat

Bořivoj Vokřínek • 9/1/2020
  • Hotel transaction volume reached €5.7 billion in the first half of the year 
  • European investors accounted for 78% of H1 2020 transaction volumes
  • Institutional investors the most active
  • The UK remained highest volume market, but Germany was the most active market

The first half of 2020 saw a marked increase in investors retreating to their home regions amid COVID-19 related uncertainty, with 78% of the recorded €5.7 billion in transactions (a year-on-year fall of 55%) originating from within Europe.  

The H1 2020 hospitality sector data shows that some 79% of the deal volume was agreed before the COVID-19 outbreak. There were, however, still several notable deals agreed after the pandemic outbreak, totalling €1.2 billion, confirming that there are investors confident about the long-term prospects of the hotel sector.

Examples of key transactions, with the final price agreed post-COVID-19 lockdown, include acquisition of the 136-key Ritz London by a Qatari investor, and the purchase of 304-room nhow hotel in Berlin by Swiss-listed Eastern Property Holdings.

The most active buyers during the last six months were institutional investors (48% of total volume transacted), a group that typically has better access to capital, strong financial capability to withstand temporary challenges and frequently a longer-term investment strategy. 

The average price per room has increased by approximately 26% to €239,000 compared to €189,000 per room in 2019. This can largely be attributed to the changing nature of hotels sold in H1 2020, which has focused on prime assets in core locations (including the Ritz) and where there is less concern about the impact of COVID-19 on long term real estate values; rather than a suggestion of reduced yields.

Despite a notable decline, the UK remained the highest volume market for hotel investment in H1 2020 (€1.8 billion) by virtue of the sale of The Ritz London which represented nearly half of total deal volume. Germany recorded the second highest transaction volume (€0.9 billion) and was also the most active market with the highest number of properties and rooms sold. Spain, taking third place, was one the few countries to record investment volume growth, up by 52%. This can be largely attributed to the notable acquisition of the Madrid EDITION hotel for €220 million by Archer Hotel Capital, from KKH Property Investors. 

Another country seeing a notable increase in investment activity was Greece, which recorded two major resort transactions, namely:

  • A resort portfolio comprising 1,094-rooms across five seafront hotels on Crete, purchased by a joint venture between Henderson Park and Hines. 
  • Integrated 990-room Porto Carras resort on the Halkidiki central peninsula, acquired in April 2020 by Belterra Investment for more than €200 million. The seller - Technical Olympic - was represented by Cushman & Wakefield.

Both deals were agreed after the start of the pandemic and show the growing popularity of resorts among investors, driven by the positive long-term growth outlook for leisure travel as well as expected faster post-COVID-19 recovery of this segment relative to business and conference demand.

Jonathan Hubbard, Head of Hospitality EMEA at Cushman & Wakefield, commented: “The hotel sector across Europe has been hit hard by COVID-19 lockdowns, which have understandably resulted in a sharp drop in investment volumes as investors take stock and await signs of a trading recovery. However, investor sentiment for the sector remains positive for the medium term and the transactions that have occurred demonstrate this confidence. Nonetheless, with a very uncertain trading outlook in the short term, many well capitalised investors are holding out for pricing adjustments or some distressed sellers to unlock more upside in their acquisitions and this is likely to be a feature of the market in H2 2020.”  

Get all the hotel sector real estate market data for Europe by downloading the reports. 

 EUROPEAN HOTELS INVESTMENT MARKET DATA

high rise hotel facade, modern blue building
Q4 2019 Europe Hospitality MarketBeat

Europe Hospitality Marketbeat Q4 2019 is the 2019 summary of the European hotel real estate sector in key cities, providing comment on recent trends as well as market data and analysis.

Download

Hotel receptionist checking in guests all wearing PPE face masks
H1 2020 Europe Hospitality MarketBeat

Europe Hospitality Marketbeat H1 2020 is the latest summary of the European hotel real estate sector in key cities, providing comment on recent trends as well as market data and analysis.

Download

More Hotels Insight

Hotel room sepia
Insights • Hospitality

COVID-19 Impacts on Hospitality

An update on the impacts of COVID-19 pandemic on hospitality real estate in Europe.
Bořivoj Vokřínek • 5/28/2020
Hotel Prague
MarketBeat

Czech Republic MarketBeat Hospitality

Cushman & Wakefield MarketBeat Hospitality report analyse quarterly commercial property activity across hotel real estate sector in Prague, Czech Republic including supply, demand and pricing trends at the market.

Bořivoj Vokřínek • 3/1/2020
hotels business portugal
Research • Hospitality

2020 Hotels Business Portugal

Hotels & Business is an initiative designed by Cushman & Wakefield’s hospitality team in Iberia. Similar to the Hotel Investment in the Iberian Peninsula joint initiative, this publication aims to provide a systematic and informed approach to the hospitality tourism sector in a region that is one of the most coveted tourist regions in the world – the Iberian Peninsula.
Gonçalo Garcia • 6/24/2020
Women Hotel City
Insights • Hospitality

The Hotel Investment Scene in CEE

After years of rapid and turbulent development, the CEE-6* hospitality markets were catching up with their western neighbours, in terms of both investment volumes and sophistication. 
Bořivoj Vokřínek • 4/7/2020
Luxury hotel room with double bed and flowers
Insights • Hospitality

Hotels and Business Magazine

Hotels & Business Magazine is dedicated to the hotels and holiday sector in Spain and abroad.
Bruno Hallé • 12/17/2019
woman with summer hat walking away from camera
Research • Hospitality

Hotel Investment in the Iberian Peninsula

The tourism sector is one of the fastest-growing industries in the world, increasingly capturing interest from investors attracted by the premium returns and positive long-term prospects. Cushman & Wakefield and CMS review the hotel investment market across the Iberian Peninsula to understand how it will expand and evolve.
Gonçalo Garcia • 10/10/2019
Czech Republic, Prague, Old Town Square, High Street
MarketBeat

Czech Republic MarketBeat

Cushman & Wakefield MarketBeat reports analyse quarterly Czech Republic commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Marie Baláčová • 11/3/2020
Hotel card (image)
Insights • Hospitality

The strongest hotels are strategizing for a successful comeback

With little to zero travel happening since the pandemic’s inception, hotels have taken a hit like never before. As countries undertake various phased measures and approaches to recovery readiness, the hotel industry is poising itself for its own path forward.
Elaine Sahlins • 7/29/2020
Hotel room sepia
Insights • Hospitality

COVID-19 Impacts on Hospitality

An update on the impacts of COVID-19 pandemic on hospitality real estate in Europe.
Bořivoj Vokřínek • 5/28/2020
Women Hotel City
Insights • Hospitality

The Hotel Investment Scene in CEE

After years of rapid and turbulent development, the CEE-6* hospitality markets were catching up with their western neighbours, in terms of both investment volumes and sophistication. 
Bořivoj Vokřínek • 4/7/2020
Hotel Prague
MarketBeat

Czech Republic MarketBeat Hospitality

Cushman & Wakefield MarketBeat Hospitality report analyse quarterly commercial property activity across hotel real estate sector in Prague, Czech Republic including supply, demand and pricing trends at the market.

Bořivoj Vokřínek • 3/1/2020

MEET THE TEAM

John Hubbard - London
Jonathan Hubbard

Head of Hospitality EMEA
London, United Kingdom


+44 207 152 5803

jonathan.hubbard@cushwake.com

Download VCard

Robert Seabrook - London
Rob Seabrook

International Partner
London, United Kingdom


+44 (7768) 796167

Rob.Seabrook@cushwake.com

Download VCard

Boivoj Voknek
Bořivoj Vokřínek

Strategic Advisory & Head of Hospitality Research EMEA
Prague, Czechia


Borivoj.Vokrinek@cushwake.com

Download VCard

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.