Valuation Trends in the European Hotel Market
On Wednesday 19 March 2025 we presented our 23rd webinar with our friends at HVS, AlixPartners and EP Business in Hospitality.
Key Takeaways
- Introduction: Chris Sheppardson, CEO of EP Business in Hospitality, highlighted the year's geopolitical and economic challenges.
- Poll Results: 300 delegates believed hotel values will remain stable over the next 12 months.
- Hotel Transactions and Valuations: Sophie Perret of HVS reported a 62% increase in transaction volumes in 2024, with the UK leading in liquidity.
- Valuations: Modest 2% rise on average, with Southern Europe seeing the strongest gains.
- Tourism Outlook for 2025: Europe remains a top destination, with 53% of global tourists visiting in 2024.
- Panel Discussion: Optimism about the European hotel sector's long-term prospects, despite geopolitical risks and cost pressures.
- Brands and Deal Structures: Shift towards franchises for more flexibility; brands crucial for cost efficiencies and top-line performance.
- ESG and Climate Change: Increasing importance, with green financing gaining traction.
- Debt Funding: Focus on refinancing rather than acquisitions.
- Closing Remarks: Russell Kett, Chairman of HVS, expressed optimism, stating, “Above all, for me and all of the panel, including Sophie, hotels remain a long-term attractive investment."
