EUROPE REPORT
The Dilly hotel in London was acquired by Israel ’ s Fattal Group last year . The terrace at The Dilly .
rates . “ What you ’ ll see is true luxury and those who are delivering true value really stepping away from the rest of the market because they ’ re actually delivering an experience that people are willing to pay for ,” he said .
Meanwhile , across the continent , spa and leisure revenues were up by 29 % and golf by 31 % last year compared to 2019 ; however , outlet revenues were only up 3 % per occupied room , with food and beverage profitability a “ huge concern ,”
said Grove . At the same time , record cancellation levels across Europe are translating into highly profitable revenue , up 49 %.
DEALMAKING When it comes to hotel transactions , although volumes are down —€ 16.1 billion in 2022 following € 17 billion in 2021 and € 27 billion compared to 2019 — Hatton said this was due to the cost to finance and the volatility of the interest rate market .
“ You had this standoff between the folks whose cost of debt had gone up and this increasing performance . That meant you struggled to get people to the middle ground of doing a transaction because there was no meeting of minds as to where true value lay ,” he said .
Moving into 2023 , regulatory authorities ’ interventions appear to have stabilized the banking sector and CBRE expects that while costlier debt and an economic slowdown will limit hotel investment
RECOVERY GRAPH
Month to Month Index vs 2019 – GOP Per Available Room
Jan-20
Jan-23
-29 %
-35 %
-59 %
-83 %
Germany Netherlands UK Europe Average
Source : HotStats
24 hotelsmag . com May 2023