Hotels in Europe experienced ongoing value growth and recovery in 2015 with hotels in many cities reaching record performance, according to the 2016 European Hotel Valuation Index (HVI) published this week by global hotel consultancy HVS.
The year was particularly good for hotels in Eastern Europe, which bounced back from declining values in 2014 to reach a 5% increase that matched the European average for 2015. Hotels in northern and southern Europe saw the biggest growth in value per room.
The city that saw the biggest rise in value terms was, for the second year running, Madrid, where hotels saw a 14% increase year-on-year.
“RevPAR in Madrid is still significantly below its previous peak so there is still potential for hotel values in the city to grow further,” commented report author Constance Biria, HVS consulting & valuation analyst.
“Hotel supply in Madrid has not changed significantly in the past year but a 10% increase in visitor numbers has seen occupancy grow pushing up achieved average rates.”
Dublin’s hotels saw the second biggest increase, with a 13% hike on the back of strong interest from investors, a rise in visitor numbers, and the fact the city has a limited pipeline for new properties.
Hotels in Birmingham almost matched this increase at 12.9%, as did hotels in Athens at 12.6%. Properties in Manchester came fifth in the list of the year’s biggest climbers, with values up by 11.6%.
Birmingham and Manchester are proving to be the UK’s most thriving secondary cities, with strong average rates being the main driver along with solid RevPAR growth.