2012: reserved growth with strong fundamentals - February 2013

http://www.realestate.bnpparibas.com/bnppre/en/market-research/overview/2012-reserved-growth-strong-fundamentals-february-2013-p_1567281.html

20/02/2013
Western Europe | Hotels
Property Report H2 2012

2012: reserved growth with strong fundamentals - February 2013

At € 6 billion invested during 2012, the hotel investment volume in France, Germany, Italy, Spain and the United Kingdom suffered a 5% drop compared to the previous year.

The hotel investment market remains strong in the core markets in Western Europe…

- The second half of the year was stronger than the previous one and posted a year-on- year increase of 7%.
- Even though declining, the United Kingdom remained the most liquid hotel investment market.
- 2013 is expected to be a repeat of 2012. The asset-light strategy of hotel groups will offer some opportunities to buy in 2013

… driven by strong hotel fundamentals.

- German hotels stood out with a 5% rise of their RevPAR.
- Spanish hotels’ performances deteriorated over 2012, weighed down by a sluggish domestic tourism.
- Similarly, RevPAR in Italy declined, though average daily rates remain high, above € 100.
- According to MKG Hospitality, RevPAR growth in 2013 is estimated between -1% and +0.5% in Western Europe.

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