EUROPE REPORT
THE REIGN IN SPAIN
According to CBRE ’ s 2024 European Hotel Investor Intentions Survey , Madrid trails only London in hotel investment .
AS MARKET CONDITIONS CHANGE ACROSS EUROPE , INVESTORS SEEK OUT NEW OPPORTUNITIES .
By ALICIA SHEBER
Investors in hotel assets are all-in on Europe , but it ’ s not going to come cheap . That was just one of the nuggets of information that came out of CBRE ’ s 2024 European Hotel Investor Intentions Survey , which revealed increased optimism and a hunger for value-add opportunities fueling the market , despite recent geopolitical challenges , along with a change in the top spot for capital deployment .
The report indicated that more than 90 % of European hotel investors plan to sustain or increase their capital investments in
2024 , particularly in luxury developments .
Kenneth Hatton , head of hotels , Europe , CBRE , identified several reasons for the rosy outlook , including an environment where travel demand is still high against a compression of available rooms , a product of some four years now of stunted new-hotel construction , the result of a higher cost to build due to more expensive financing options . “ You ’ ve got this magic combination of increasing
YOU ’ VE GOT THIS MAGIC COMBINATION OF INCREASING DEMAND AND REDUCED SUPPLY , WHICH BASICALLY GIVES THE INVESTORS THE VIEW THAT THEY ’ VE GOT PRICING POWER
– KENNETH HATTON , HEAD OF HOTELS , EUROPE , CBRE demand and reduced supply , which basically gives the investors the view that they ’ ve got pricing power . The critical piece in 2024 is that there ’ s far more debt available because interest rates are now stabilizing , inflation is under
40 hotelsmag . com September July / August 2024