Checking in: Europe’s hotel industry faces challenges, but optimism prevails

Checking in: Europe's hotel industry faces challenges, but optimism prevails.

Checking in: Europe's hotel industry faces challenges, but optimism prevails. Image: Dragon Images /

In recent years, the hotel industry has faced challenges like temporary closures due to the pandemic but has also seen a strong comeback driven by increased travel.

However, in Europe, the hotel investment market has had a tougher time due to rising financing costs and economic uncertainties.

Between January and September 2023, hotel sales in Europe reached over €10B.

This was a 10 per cent drop compared to the previous year and a 26 per cent decrease from the average over the last five years.

Despite this decline, hotels fared better than other real estate sectors, which saw a 54 per cent decrease in sales.

Several factors have helped hotels stay resilient, including investors showing more interest in different types of assets as the economy and society change.

Looking ahead to 2024, economic and geopolitical issues might slow down the industry’s growth, but it’s still expected to do well.

Investment in hotels is predicted to go up, especially in the second half of the year.

When we look at specific countries, we see a rise in hotel sales in Spain, France, and Portugal.

Investors are particularly interested in buying resorts and hotels in major cities with lots of tourists, like Paris, Barcelona, Madrid, and Rome.

These properties offer ways to make more money, especially when inflation is high, and they have good long-term potential because of changing trends.

These trends include more people having free time for leisure, technology making hotels run better, easier transportation, people preferring to spend money on experiences rather than things, and a lifestyle where people stay in different places more often.

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Written by

Anna Ellis

Originally from Derbyshire, Anna has lived in the middle of nowhere on the Costa Blanca for 19 years. She is passionate about her animal family including four dogs and four horses, musicals and cooking.