Newly released data from Cushman & Wakefield reveals that, contrary to expectations, hotel transaction activity in Europe remained resilient during the global Covid-19 crisis.
While total investment volumes for the region declined considerably, by 63 per cent compared to 2019, there was still over €10bn of deals closed in 2020. Investors remain optimistic about the medium to long-term prospects of the industry, with major transactions still taking place and deals continuing to be agreed.
The UK saw the highest volume of deals in 2020 at €2.3bn billion, albeit this was a -58 per cent decline on 2019. This was followed by Germany at €1.8bn billion (-64 per cent decline on 2019) and Spain at €1.2bn (-20 per cent decline on 2019). Among the least impacted major markets were Sweden, Switzerland, Greece, Portugal and Spain. Sweden in fact saw a slight increase in transaction activity, up by about 5 per cent compared to 2019.
Jon Hubbard, Head of Hospitality EMEA at Cushman & Wakefield,commented: “The hotel sector across Europe has been hit hard by COVID-19 lockdowns, which have understandably resulted in a sharp drop in investment volumes. However, the hotel industry is unique in that, for the most part, there is not a viable virtual pivot for travel and tourism – there will always be a need for hotel accommodation. Investors recognise this, and their sentiment for the sector remains positive for the medium to long term.”
