EMEA Hotels Market Update 2021

In the following report we look at the performance of key European markets, considering the impact of the pandemic, the expected future recovery and investment sentiment.

Key takeaways:

• Domestic leisure demand was the key driver of hotel performance across Europe during the region’s partial reopening throughout the year, with provincial markets performing better than gateway and capital cities.
• Serviced apartments and accommodation, targeting longer stays, also outperformed the traditional hotel market in many locations.
• The initial phase of recovery will be driven by domestic demand. Countries with typically strong domestic leisure demand and less exposure to inbound travel markets, particularly long-haul, are likely to see performance bounce back sooner.
• The sector remains of strong interest for a range of investors and significant additional capital was raised in 2020 to target hotel opportunities.