The hotel industry in the UK and across Europe looks forward to a positive 2014 with increased demand from both leisure and corporate guests; transaction activity set to improve; and lending becoming more easily available, according to HVS London.
Across Europe, hotel development remains active with 360 ongoing hotel projects. Many are expected to open in 2014, with the remainder in 2015 and 2016. A further 450 hotels (70,000 rooms) are currently at the planning stages, with the majority of projects set for the UK followed by Russia, Turkey, Germany, and France. About 45 percent of the new rooms under construction in Europe are in the upscale sector, rather than only the budget sectors.
“There has been much talk about the growth of the budget end of the market, but operators are still keen to build prestigious hotels in key locations as consumer demand from Russia, China, and the Middle East remains strong,” says HVS chairman Russell Kett.
While hotel development and transactions look relatively positive, Kett urges operators across Europe-particularly those in upscale hotels-to adapt to the changing demands of the modern traveler. London has taken the lead in the development of alternative hotels, such as boutique properties and serviced apartments. These developments are meeting the needs of this demand base and ultimately this might stretch more into the UK regions.
“Boutique hotels have a great future ahead of them, not least in helping to re-educate the mainstream hotel sector in what the hotel business is all about,” adds Kett.
