Highlights

  • Values across Europe gained a further 3% in 2019, on the back of similar RevPAR growth on average for all markets;
  • Steady capitalisation rates in the hotel space, coupled with attractive risk- adjusted returns for this sector, drove transaction volumes up 37% in 2019;
  • Tourism visitation continued to grow across Europe (+4% in 2019) and the world in general;
  • Concerns around the final shape of Brexit, cost pressures (labour, overheads) and the repercussions of the coronavirus are some of the challenges that could well impact RevPAR growth in the short to medium term, and therefore hotel values.

Whilst global tourism increased by 4% in 2019, this was the slowest pace for the last three years, and slightly below the ten-year average of 5%. Still half of all globetrotters end up in Europe: more than 720 million of them in 2019. This is also up 4% on 2018, as travellers braved challenges such as the collapse of Thomas Cook and of various low-cost airlines during the year and, indeed, the continuing Brexit uncertainty. Unsurprisingly, sunny destinations within the continent (such as Southern and Mediterranean Europe) did better than cloudy Northern Europe. France benefitted from the deepest tourist pockets last year, whilst Germany is this year expected to benefit from the Beethoven 2020 celebrations.

Download the 2020 European Hotel Valuation Index, by Magalí Castells and Sophie Perret

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