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“ There ’ s no one size fits all when working in Europe ,”
explains Josh Littman , executive vice president of hotel development for Hard Rock Hotels in Europe , the Middle East and Africa . " Europe is not just one market . There are different cultures , different languages , different ways of doing business , different values ."
Despite differences , the general sentiment when looking ahead at performance and development , similar to years past , is slow and steady growth across Europe . According to Lodging Econometrics , Berlin reported the highest year-over-year growth in rooms with 32 projects / 6,266 rooms , a 47 % increase by rooms . London trailed at 78 projects / 14,070 rooms , a 26 % increase by rooms .
Factors including Brexit , the U . K .' s decision to leave the European Union , contribute to slower growth as a result of widespread uncertainty . According to a recent report by HVS , AlixPartners and AM : PM , hotel occupancy in London had its sixth consecutive quarter of year-onyear decline .
" There is a wait-and-see attitude that people are adopting before making investment decisions ," says Russell Kent , chairman of HVS ' London office , adding that most acquisitions are being done with private equity or foreign investment . " There is a lot of Asian money out there that is looking to invest in safe havens , and the U . K . is still considered to be one ."
OppOrtunities in spain , italy Although the toughest part of its recovery is thought to be behind Spain , Ivar Yuste , founding partner at consultancy PHG in Madrid , says there is still room for improvement , particularly in cities like
Madrid . In terms of transactions , Spanish hotel groups are very active in the market , particularly Hotusa and HI Partners . He adds that the Spanish hotel industry in general needs “ severe refurbishing and upgrading .”
“ As a result , the luxury segment , in particular , is experiencing a lot of interest ,” Yuste says . Hong Kong investment group Platinum Estates is evaluating a € 300 million ( US $ 326.18 million ) investment in Marbella , Chilean group Phoenix Enterprises recently took over the Westin La Quinta in Benahavis , and several Middle East investment groups are considering opportunities in the coastal town of Benalmadena .
According to Hugo Rovira , managing director of Madrid-based NH Hotel Group , instability of other Mediterranean tourist competitor countries is temporarily “ lending ” thousands of tourists to
28 hotelsmag . com December 2016