2010 proved to be a year of recovery in EMEA for both hotel operators and investors alike, with investment volumes across the region totalling EUR 7.7 bn, compared to EUR 3 bn in 2009, according to the Hotel Investment Highlights report by Jones Lang LaSalle Hotels.
2010 proved to be a year of recovery in EMEA for both hotel operators and investors alike, with investment volumes across the region totalling EUR 7.7 bn, compared to EUR 3 bn in 2009, according to the Hotel Investment Highlights report by Jones Lang LaSalle Hotels.
Mark Wynne-Smith, CEO for Jones Lang LaSalle Hotels EMEA, said: 'As corporate travel began to recover and investor confidence strengthened, last year marked the turning point for the EMEA hotel market. The year started off revitalised with a 36% increase in investment volumes in Q1 year-on-year and continued to accelerate throughout the course of 2010.'
During 2010 the European hotel market experienced an improvement in both occupancy and average room rates. As trading fundamentals improved in most markets, room yields across Europe increased on average by nearly 10%, according to STR Global. However, despite the positive results at year end, room yields in almost all markets remained below peak levels in 2007.
Wynne-Smith commented: 'Only Frankfurt, London and Munich proved to be an exception to this rule. Market conditions proved more challenging for hoteliers in regional cities, the majority of which depend on domestic tourism demand. While trading fundamentals also strengthened, the level of increase has generally been more subdued.'
