HA Perspective 2019

    Green lending gains traction

    Hotel groups are waking up to greater carbon reduction opportunities than just doing away with individual shampoo bottles. A range of new initiatives, tied to reducing energy use, are extending all the way into funding. The sector has seen a number of firsts during the last year, and seems set for substantial growth. With a [...]

    Europe’s new student markets

    Investors looking for better returns in student accommodation are turning towards markets in central and southern Europe, as the UK market matures. Concerns around Brexit affecting student numbers, and oversupply in key markets, are both hitting opportunities. Savills declares the UK student accommodation market the most mature of the country’s operational real estate markets. “Now [...]

    Millenium builds momentum

    Spanish investor Millenium Hotels Real Estate is making a major splash in the Spanish hotel market, demonstrating that the country still provides strong pickings for those seeking value-add opportunities. The group, which listed as a SOCIMI (Spanish REIT) on the Spanish alternative market in July 2019, recently declared six-month figures with an ebitda of EUR1.3m. [...]

    Fractional fractures

    Recent events have again shone an uncomfortable light on the use of fractional investment in the hotel world, with small investors exposed to the risks inherent in backing newer, unproven real estate operators. In November, UK media headlines suggested investors in Signature Living were being deprived promised repayments. Comments from Signature founder Laurence Kenwright suggested [...]

    Japan set to enjoy Olympic year

    Japan is set to be the first Olympics to experience the impact of Airbnb as an accommodation partner. The International Olympic Committee and Airbnb have signed a deal to collaborate around nine Olympic events, in a bid to solve the challenge of peak demand for bed space in host cities. The inevitable spike in demand [...]

    Co-living opportunities on the rise

    Co-living is coming and offers a potentially large new sector for investors keen to tap into new accommodation trends. Recent research points to the living concept becoming a global, not just a Western phenomenon, spurred on by the growth of cities, pressure on housing, living costs and changed expectations from a new generation of city [...]

    Huazhu grabs Deutsche to move upmarket

    Chinese hotel group Huazhu has agreed to buy German group Deutsche Hospitality, for EUR719m. The move will give fast-growing Huazhu a portfolio of upper end brands to grow in China, and adds a foothold in Europe, the Middle East and Africa. The deal sees Nasdaq-listed Huazhu buy all the shares in Deutsche, which was controlled [...]

    OTAs struggle to maintain growth pace

    Travel platforms Expedia and Booking are finding the going tougher, as they battle growing costs and lower margins. Expedia disappointed the markets, with lower profits at Trivago and Vrbo, and reduced full year guidance. At Booking, while volumes grew, average room rates slipped and are expected to slide further in the coming quarter. At Expedia, [...]

    Sun shines on Spain as clouds gather

    Spanish hotel markets enjoyed a hot summer, buoying the performance of leading locally-based groups Melia and NH Hotels. The home market strength offset issues elsewhere, and at Melia meant a net 0.2% improvement in revpar across the portfolio. Revpar was up 9.2% in Spanish cities in the third quarter, with strong performances too from hotels [...]

    Investor appetite undimmed by economic concerns

    A lack of stock is being blamed for a reduction in investment volume across European hotel markets. Deal flow in the third quarter of 2019 is reckoned to be down 30% on the same period in 2018, as investors struggle to find assets for sale. With elections in Spain and the UK, and worries of [...]