Sentiment on the hotel investment market has dampened in spring 2016, but the market assessment remains positive overall and at a high level, according to Union Investment's latest Investment Barometer report, carried out in collaboration with publisher HospitalityInside.
'The terrorist attacks in Europe in particular and the uncertainties and risks around the Mediterranean in general have formed new hurdles for tourism over the last year,' said Andreas Loecher, head of investment management hotel at Union Investment Real Estate.
'This obviously has an impact on expectations, in particular also in relation to hotel occupancy. Brussels, for instance, has recently suffered a massive collapse in hotel occupancy. Whilst free capital can be redirected to safe locations, some is trapped in crisis regions, and the hotel operators must attempt to master these challenges.'
The survey also revealed that revenue expectations for the industry have fallen by 5.7%, though this still means that 75% of those surveyed continue to expect good to very good business for the sector. Those surveyed viewed the current situation and expectations for their own business over the coming six months with more optimism than they viewed the market in general.
Sentiment with regard to development of new hotels has tended lower - after a sharp rise in the last survey - and is now 8.5% lower, Union Investment said.
