PwC predict the future of Europe’s hotel market
Looking at the trading trends in 19 key European cities, the report provides a forecast for 2016 and 2017.
The report looks forward and predicts what could affect the market, including economic woes which could have a detrimental effect on the performance of Europe’s hotel market.
Looking back to last year, the report shows that 8 of the cities featured in the report experienced a record-breaking year. Some locations even recorded double-digit RevPAR.
Despite underlying economic uncertainty surrounding Europe, in terms of a weaker Euro when compared to the US dollar, PwC expect that the hotel market will see positive revenue growth throughout 2016-2017 albeit slower than last year.
“Positive hotel trading performances are driving hotel investment markets in Europe. Deal volumes have been boosted by growing confidence and greater international investor interest. And we forecast continued activity in the hotel investment market in 2016, albeit at slightly more subdued levels,” PwC’s Staying power: European cities hotel forecast for 2016 and 2017 report states.
- 19 cities including London, Paris, Rome, Lisbon, Edinburgh, Amsterdam, Berlin and more were analysed in the report
- 2015 helped close the gap in hotel revenues since their pre-recession peaks
- Europe enjoyed a ‘bumper year’ as record tourist arrivals accelerated
- Economic, travel and supply issues were reviewed
- Key negative risks such as cyber security, economic and travel outlook were considered
Outlook for 2016:
- PwC expects trading fundamentals to continue across all 19 cities featured however, growth may be slower than 2015
- Continued Eurozone growth is expected to drive growth
- A general positive ‘travel backdrop’ will help boost the sector. Special events such as UEFA Euro 2016 and a special Jubilee in Rome will continue to attract visitors
- Low levels of supply will continue to boost the market however, locations such as London, Istanbul, Moscow and Berlin have a large pipeline to account for
This article has been provided by Experience Invest.