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HVS: Hotel transactions set for recovery after 2020 slump




HVS: Hotel transactions set for recovery after 2020 slump

Total European hotel transaction volume fell by 69 per cent in the year of the pandemic following a record high the previous year when €27 billion-worth of hotel deals were struck.

According to the annual European Hotel Transactions 2020, published this week by HVS and its brokerage and investment services division HVS Hodges Ward Elliott, hotel transaction volume reached €8.5 billion last year.

Single-asset transactions accounted for 65 per cent of all deals,  totalling €5.5 billion, while portfolio deals represented 35 per cent at €3 billion.

Before the pandemic, 2020 was set for record transaction levels.

The year started strongly with transactions in January and February up 2.5 per cent on 2019 with volumes of €2.7 billion and a 1.8 per cent rise in the average sale prices per room to €170,000.

Subsequent lockdowns across Europe coupled with limited availability of debt financing pushed transaction levels down by 66 per cent with only one type of buyer, high-net-worth individuals, investing in larger volumes of hotels than in the previous year.

A total of 201 European hotels and more than 44,000 rooms exchanged owners in 2020.

The UK retained its position at the top of the transaction table, posting the highest level of investment volume across Europe with a total of €2.1 billion (£1.8 billion).

Some €1.6 billion-worth (£1.4 billion) of UK transactions were London-based.

Germany maintained second place in the transaction rankings, with total hotel investment volume for the year reaching €1.7 billion.

Munich was its most favoured city with €501 million-worth of transactions.

Looking ahead, HVS expects that the second half of 2021 will begin to show signs of transaction volume recovery as economic support programmes fall away and loans come up for refinancing, but the bulk of the recovery is likely to happen in 2022 in parallel with rising hotel revenue streams.

“The full impact of the pandemic is expected to affect the transaction market later this year with an increase in distressed debt and opportunistic investment ahead of a gradual market recovery.

“However, the majority of volume recovery is expected in 2022 as immunisation programmes are completed and the leisure and corporate travel sectors start to recover,” commented report author Shaffer Patrick, associate, HVS Hodges Ward Elliott, London.

More Information

Take a look at the full report here.


England reveals ‘green list’ of safe travel destinations




Madeira to open up to vaccinated tourists

Holidaymakers from England will be equipped to vacation to Portugal and Malta, amongst other destinations, below new tips issued by the govt.

Israel, Singapore, Australia, New Zealand, Brunei, Iceland and St Helena are also on the ‘green’ checklist unveiled today by transportation secretary, Grant Shapps.

Gibraltar, the Falkland Islands and the Faroe Islands, as effectively as South Georgia and the South Sandwich Islands, total the listing.

Travellers checking out nations around the world on the authorized list will not confront quarantine on their return to the Uk.

Currently, men and women in England confront fines for holidaying overseas, and will have to have a legitimate rationale for foreign vacation, with variations to come into influence from Could 17th.

Scotland, Wales and Northern Eire have not explained when they could ease their strict journey policies.

Tolene Van Der Merwe, director United kingdom & Ireland at the Malta Tourism Authority, commented: “We are delighted that Malta has been additional to the inexperienced journey list and we are quite considerably seeking ahead to welcoming back British travellers.

“Malta has applied its Sunny and Secure Covid-19 protocols, so for those people organizing a future journey, can be reassured that all dining establishments, lodging and service companies have to comply with the optimum degrees of cleanliness and safety.

“Malta has the best vaccination price in the Europe Union, with 50 per cent of the adult populace obtaining now been vaccinated with at least 1 dose of a Covid-19 vaccine, whilst a person in five have also obtained the next dose.”

Travellers to international locations rated inexperienced will not need to have to isolate on their return, but they will need to have to choose a Covid-19 take a look at before and soon after their journey.

Countries will be categorised primarily based on their number of Covid circumstances and the achievement of vaccine rollouts.

Arrivals from amber nations around the world will need to quarantine, while crimson-list nations have the strictest procedures, with only Uk or Irish nationals, or United kingdom people, allowed to return.

Travellers need to also pay out for a ten-day keep in a government quarantine resort.

Turkey, Maldives and Nepal have now been extra to the existing pink list.

When preferred locations on the crimson list are…

The Uk govt formerly stated the journey regulations will be reviewed all over again on June 28th to see regardless of whether any steps can be calm additional.

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