United Kingdom beyond London .
Germany ’ s hotel market has never been as high-powered as its neighbors to the west , but the country is drawing attention from investors and developers thanks to its relatively stable economy . Asset trading has remained strong in Germany through the economic crisis , which has generated interest from international brands looking to expand via conversions . German banks are more willing to fund hotel acquisitions and developments than are banks elsewhere in Europe , according to a December report by consultancy HVS London . Debt is far easier to come by for flagged hotels , which is welcome news for conversion-heavy players like Wyndham , which has a deal in place to launch 10 Super 8 properties in Germany and which is finding healthy investor appetite for conversions to its Ramada and Wyndham brands .
Financing remains difficult It is a fair question whether new hotel construction or major renovation
“ FINANCING IS ONLY AVAILABLE TO PEOPLE WHO , FRANKLY , DON ’ T REALLY NEED IT . IF YOU ’ RE JUST A REGULAR DEVELOPER , FORGET IT , YOU ’ RE GOING TO HAVE A PRETTY HARD TIME .” – Nick van Marken , Deloitte
projects are even prudent — or it would be a fair question were it not moot . Aside from a few atypical local markets and for all but the very largest players , access to financing across Europe and the Middle East is as difficult as it has been in recent memory , analysts and industry executives say . “ Financing is only available to people who , frankly , don ’ t really need it ,” says Nick van Marken , the global head of hospitality for consultancy Deloitte . “ If you ’ re just a regular developer , forget it — you ’ re going to have a pretty hard time .”
On the M & A front , look for major corporate investors to leverage balance sheets for portfolio acquisitions in 2013 . Many analysts a year ago expected consolidation of small hotel groups to be a trend in 2012 ; that did not materialize in any significant way , but it could be only a matter of time before the transactions market heats up again . Banks that have been holding underwater assets for several years are finally looking to move on . Bargain deals can be had , if buyers can scrape together the funds . “ I don ’ t think it ’ s going to be a big fire sale , but I do think we ’ ll see some trading selectively and in an organized fashion ,” van Marken says . “ I ’ m hopeful , anyway .”