The European hotel sector continues to gain ground as an accepted property asset type with a total return of 6.6% in 2013, outperforming the wider market total return of 5.9%, according to the IPD Pan Europe Annual Hotels Index.
The European hotel sector continues to gain ground as an accepted property asset type with a total return of 6.6% in 2013, outperforming the wider market total return of 5.9%, according to the IPD Pan Europe Annual Hotels Index.
Encouragingly, the IPD hotel sample increased this year to 742 assets with a value of €12.6 bn, compared with 505 assets and €11.4 bn in 2012, highlighting its shift from an alternative property asset class towards a mainstream sector.
'Over the 13 year history of Pan European data series Hotels is clearly the least volatile of all sectors with particularly robust performance during the downturn,' IPD said in a statement.
Hotels outperformed all property types in 2013 except industrial, and also outperform over 3, 5, 10, 13 year annualised periods against retail, office, industrial & residential.
Split between income and capital, the return of 5.8% was from income, with capital growth for the period at 0.8%, up from 0% in 2012.
Of the 12 countries measured, the UK saw the strongest performance in 2013 with a total return of 11.2%, more than double the 2012 figure of 5.2%. The UK was followed by Austria at 6.4%.
Italy returned the lowest again at -3.17%, a fall from the 0.9% registered in 2012.
