UK and European Hotels Show Resilience Amid Economic Challenges

• Despite economic challenges, the hotel sector in the UK and Europe is witnessing steady growth due to strong performance in certain areas and successful deal momentum.
• The hotel market in the UK is expected to remain robust. London will continue to be a hotspot for investors, while regional cities are also gaining attention.

As reported by CoStar, the hotel industry in the UK and Europe is demonstrating resilience amid economic uncertainties. Successful deals, pockets of strong performance, and an optimistic outlook for the sector drive this trend. 

Despite Brexit-related challenges, the UK’s hotel market continues to flourish. London remains a prime spot for investors due to its strong fundamentals and high occupancy rates. The city’s hotels have shown impressive performance, with RevPAR (revenue per available room) growing by 2.9% in 2018. Moreover, several high-profile transactions such as the sale of Grange St Paul’s Hotel for £80m ($104m) have underpinned this positive trend.

However, London is not the only city attracting interest. Investors are also turning their attention toward regional cities, including Manchester, Birmingham and Edinburgh. Thanks to increased tourism and business activities, these cities have reported robust growth rates exceeding those of London.

In Europe, despite geopolitical tensions and economic slowdowns impacting some markets like Germany and France, pockets of strong performance continue to propel the hotel sector forward. Portugal has emerged as a bright spot, with Lisbon reporting a RevPAR growth of 10% last year.

Furthermore, deal momentum remains strong across Europe, with transactions totaling €20.9bn ($23bn) last year – an increase of 22% compared to 2017 figures. Notable deals include Blackstone’s acquisition of Hispania Activos Inmobiliarios for €1.9bn ($2bn), making it one of the largest hotel deals in Europe’s history.

In conclusion, despite facing economic challenges, the hotel sector in the UK and Europe continues to show resilience. The strong performance of certain areas and successful deal momentum are key drivers of this trend. This positive outlook suggests that the hospitality industry is well-positioned to weather future uncertainties.