The recovery of the European hotel market will initially be driven by domestic travel demand, with hotel revenues not forecast to recover across the market to pre-pandemic levels until 2024, according to the latest research from global real estate advisor, CBRE.
The findings show European countries with strong domestic leisure and corporate demand and less reliance on international demand, particularly long haul, are likely to recover sooner. This was the case during the partial reopening of hotels in second half 2020, when domestic leisure demand was the key driver of hotel performance across Europe. Hotels with a strong leisure offering performed strongly when travel restrictions were eased, and serviced apartments generally outperformed the market, with guests attracted by their size and ability to allow guests to socially distance.
The challenging trading conditions and market uncertainty contributed to a decline in hotel investment volumes in all countries across
