News
The annual European Hotel Transactions 2020 report has been published by HVS and its brokerage and investment services division HVS Hodges Ward Elliott.
While 2020 began strongly with transactions in January and February up 2.5% on 2019, subsequent lockdowns across Europe, coupled with limited availability of debt financing, pushed transaction levels down -66% with only one type of buyer – high net worth individuals – investing in larger volumes of hotels than in the previous year.
Total European hotel transaction volume fell by 69% in the year of the pandemic, following a record high the previous year, when €27.1bn-worth of hotel deals were made.
According to the report, hotel transaction volume reached €8.5bn last year with single asset transactions accounting for 65% totalling €5.5bn, and portfolio deals representing 35% at €3bn.
At the top of the transaction table was the UK, which posted the highest level of investment volume across Europe with a total of €2.1bn (£1.8bn). Notably, €1.6bn-worth (£1.4bn) of UK transactions were London-based.
Second was Germany, with total hotel investment volume for the year reaching €1.7bn. Munich was its most favoured city with €501m-worth of transactions.
Looking ahead, HVS expects the second half of 2021 will begin to show signs of transaction volume recovery, but that the bulk of the recovery is likely to happen in 2022, running in parallel with rising hotel revenue streams.
