Seven trending hotel news stories that will impact your hotel Revenue Strategy.
1. IHIF 218: Europe land of opportunity
Investors are aggressively seeking to buy hotels across Europe – that was the key takeaway from the first day of the 21st annual International Hotel Investment Forum by Jeff Higley, VP and editorial director at Hotel News Now, reporting from the event in Berlin.
An opening session on ‘Investor intentions in 2018 and beyond’ saw Keith Lindsay, managing director-EMEA for CBRE declare: “There’s an absolute wall of money looking at the hotel sector at the moment.” According to CBRE, capital growth is the main motivation for investors in 2018.
Martin Brühl, chief investment officer and member of the management board of Union Investment, told audiences that the amount of capital available in Europe continues to grow. However, he said this was in part because European investors were being priced out of the US.
Full story at Hotel News Now.
2. Hotel values up as confidence soars in Europe
Business and consumer confidence has pushed up the value of hotels across Europe, according to the recently published 2018 European Hotel Valuation Index (HVI). European hotel values rose 3.9% in 2017, following a year of stagnation in 2016.
Lisbon topped the HVI league with 14.7% value growth in 2017, while the strengthening rouble helped push up values in St Petersburg and Moscow, which saw Euro values rise 14.4% and 11.5%, respectively. Hotels in Madrid saw a 14.1% increase in value, placing the Spanish capital third on the HVI list. Other markets seeing growth in hotel asset value included Paris, London, Zürich, Geneva and Rome.
Full story at Hospitality Net.
3. Strong performances predicted from Europe’s key destinations in 2018
Many key destinations in Europe are forecast to see RevPAR growth of 6% or above in 2018, according to the latest data from STR’s Market Forecast Reports for 2018.
Moscow, Athens, Paris, Brussels, Amsterdam, Madrid and Prague are all expected to see strong revenue growth and average daily rate (ADR) increases this year. Meanwhile, Berlin hotels are set to see RevPAR increases of around 5%, driven by ADR growth.
Full story at Hotel News Now.
4. UAE leads region’s luxury hospitality segment
The UAE is set to continue its monopoly of the GCC’s luxury hospitality segment for at least the next four years, according to data released ahead of Arabian Travel Market (ATM) 2018.
It is expected that, by 2022, the UAE will hold 73% of operating luxury hotel stock and 61% of the luxury pipeline. In 2017, the UAE had 35% of the region’s luxury pipeline, compared to 20% in Kuwait, 19% in Bahrain, 14% in Saudi Arabia and 11% in Oman.
Full story at Hotel News ME.
5. Escalating costs hit UK hotel revenue
Hotels in the UK saw a shaky start to the New Year, with a 3.9% year-on-year decrease in profit per room for January, according to data from HotStats. The decline was largely attributed to escalating costs, particularly in payroll.
UK properties also recorded a marginal increase in RevPAR, at just 0.6% to £66.28, fuelled by a 0.8% increase in ADR to £102.58, while occupancy dropped 0.2% to 64.6%.
Full story at Hotel News Resource.
6. Scotland’s hotels see significant revenue growth
Scotland’s hotels recorded impressive performances in 2017, according to GVA’s inaugural Hotels Economic and Property Market Review. Edinburgh led the market with a 12.4% increase in RevPAR, as ADR in the city topped £100 for the first time. Glasgow recorded a 5.2% increase in RevPAR, helped by a 2.5 percentage points increase in occupancy to 82.1%.
In addition to record revenue, hotel investment transactions in Scotland were also up, increasing 69% to £240 million in 2017. Overseas investment continued to grow, with a rise in investment from Middle East and Far Eastern buyers.
Full story at Boutique Hotelier.
7. Dubai’s rooms inventory to grow 11% by 2019
Dubai’s hotel rooms inventory is set to grow by almost 25,000 by the end of 2019, according to the latest figures from Dubai Tourism. The emirate’s room supply is set to reach 132,000 by the end of 2019, representing a compound annual growth rate of 11.1%.
Dubai’s hotel market is also forecasting a 10.2% CAGR increase in occupied room nights to 35.5 million annually by 2019. Dubai Tourism has set a target of 20 million annual tourist arrivals by 2020.
Full story at Gulf News.
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