 |
|
|
 |
21 Nov 2014
London favoured for hotel investment in Europe: Deloitte study
BY
Helen Andrews
|
51 per cent of senior hospitality industry figures surveyed by Deloitte rank the UK capital ahead of Paris in terms of investment appeal
photo: Shutterstock / pisaphotography
London is the most attractive hotel investment destination in Europe according to a study by Deloitte, published ahead of the Deloitte European Hotel Investment Conference last week (12 November). A survey of senior hospitality industry figures by Deloitte found that more than half of respondents (51 per cent) rank London ahead of Paris (33 per cent) in terms of appeal for investment, followed by Barcelona (30 per cent) and Amsterdam (23 per cent).
In terms of value, opinions are mixed. 52 per cent believe London is overvalued and 45 per cent said it was fairly valued.
North American, Chinese and Middle Eastern investors are to continue to show strong interest in the European hotel sector in 2015.
Outside London, respondents favour Scottish cities as those of most interest in the UK next year. Edinburgh is the most favoured (60 per cent), followed by Aberdeen (38 per cent), then English cities Manchester (33 per cent) and Bath (19 per cent).
“There is significant appetite for hotels in Europe and the UK in particular,” said Deloitte’s global head of hospitality Nick van Marken, according to travelweekly.co.uk. “In recent months, US private equity buyers have taken advantage of low interest rates and a strong uptick in sentiment.
“After the trough of 2009, a number of deals were done, in the UK in particular, and some of these may well come back to the market,” continued van Marken. “Some valuations from two or three years ago have more or less doubled, so a number of buyers have done very well. It is easy to say in hindsight that these acquisitions were done at the right time, but real kudos should go to those who had the courage, got in and did deals even in the darkest days. Now, many will be rewarded if they get out at the right time. Some of those who missed the exit and held on may also be rewarded.”
This appetite is not without its risks, however, and a lack of economic growth across the eurozone, along with global geopolitical issues and challenges are all concerns,” said van Marken. “That said, we are likely to see yield compression in key European markets as a lack of product and high demand continues to underpin investment appetite.”
Looking beyond London, van Marken said: “The regions have benefitted from a series of high-profile international events and a return of corporate and meetings demand resulting in double-digit RevPAR growth. The strong upturn in rate is very promising albeit a return to pre-crisis profitability levels is yet to be seen.
“Whilst economic growth has remained significantly slower across Europe, any improvement in the economic backdrop still has the potential to rejuvenate the European hotel sector and encourage further investment in 2015,” said van Marken.
 |
|
|
|
|
|
|
|
|
|
Connect with
World Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
| News headlines |
|
|
 |
 |
|
26 Apr 2024
There is speculation that Basic Fit will sell the five Spanish Holmes Place clubs it has just acquired from RSG Group in a 47-club deal. In the Q1
.... more>> |
|
|
|
 |
|
25 Apr 2024
Kerzner International has signed deals to operate two new Siro recovery hotels in Mexico and Saudi Arabia, following the launch of the inaugural Siro
.... more>> |
|
|
|
 |
|
24 Apr 2024
The US spa industry is continuing its upward trajectory, achieving an unprecedented milestone with a record-breaking revenue of US$21.3 billion in
.... more>> |
|
|
|
 |
|
24 Apr 2024
Short-term incentives to exercise, such as using daily reminders, rewards or games, can lead to sustained increases in activity, according to new
.... more>> |
|
|
|
|
|
 |
|
| Company profile |
|
Serco Leisure
Serco Leisure Operating Limited is one of the UK’s leading national operators of leisure centres, destination venues and elite sporting facilities.
View full profile>> |
|
| Catalogue gallery |
|
|
| Featured Supplier |
|
 |
|
|
|
in this issue
• Virgin gets right to wipe out rent arrears
• Fitness industry mourns passing of Jan Spaticchia
• STA offers mindfulness resources
|
|
|
|
|
|
|
 |
| World Leisure jobs |
 |
Party Leader
Salary: Competitive
Location: Gainsborough
Company: Everyone Active
|
|
|
|
|
|
| Diary dates |
|
| Powered
by leisurediary.com |
 |
|
|
|
|
