Domestic demand has bolstered recovery across the European hotel market. Hotel occupancy rates grew to 38.6% in Q3 of this year - a significant improvement on historic lows of 15.3%, recorded at the earlier stages of the pandemic. The long-term fundamentals of the market have led to the sector being targeted by opportunity funds. Furthermore, selective value-add and development projects are continuing to attract debt and equity funding.
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Pricing shifts in Europe's hotel market create attractive investment opportunities
“Difficulties in obtaining debt amidst weak operational performance has acted as a significant barrier to entry for many investors,” says Richard Dawes, Director in Savills Hotels Team, EMEA. “However, the long-term fundamentals of the hotel investment market have supported ongoing interest, resulting in a number of key deals completing over the last six months.”
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