17 Oct Hotel investment conference Europe | London 26-27 September 2017
On the 26th-27th September 2017, Business Development Manager (Europe), Laura Chico Arias, attended a networking event for Europe’s top hotel investment leaders organized by Hot.E in London http://www.europehotelconference.com/
Initially, the speaker outlined the impact Brexit would have on GDP- most notably the trading of goods. The future forecasts present a significant change in GDP for the months of October, November and December of 2020. It is projected that the region most affected by Brexit will no doubt be the UK with GDP forecasted to decline by more than 1.0%, followed by Ireland, Netherland and Belgium.
Additionally, RevPAR index (Revenue per available room, which is a ratio commonly used to measure financial performance in the hospitality industry. This metric is a function of both room rates and tenancy. One can safely say that it is one of the most important gauges of health among hotel operators). In 2017 in most of the continents in the world, except for South America and The Middle east presented a change from –7.6% to -5.2% of RevPAR. If we focus on RevPAR index in European cities we will see widespread growth except for Zurich.
Proceeding this it was illustrated that the 2018 forecast for European Hotels especially the accommodations in cities hit by terrorist attacks such as Paris and Brussels will portray a positive rebound due to recently introduced recovery models. London keeps showing a strong resilience; Munich Berlin and Budapest are considered hot markets, and finally cities like Prague, Milan, Madrid and Barcelona show a stable current performance and a positive future outlook.
In conclusion, we could say that the hospitality sector is growing robustly across the world, with respect to the countries mentioned, their economic positions and political stances are yet to demonstrate much negative impact on the sector.
It can be noted that the forecast for 2018 is looking optimistic.