To read this full article you need to be subscribed to Newsline.Sign in Sign up for a FREE subscription
European hotel transactions see 18% decline in 2022
Hotel transactions across Europe failed to show the recovery expected during 2022 as confidence was hit by the Russian invasion of Ukraine, which fueled huge increases in energy and food costs, a rise in overall inflation and higher interest rates.
According to the annual HVS European Hotel Transactions report, transactions for the year totaled €13.3 billion ($14.7 billion), an 18 percent fall from the previous year, although the average achieved price per room rose 13 percent to €235,000 ($259,000) on the back of price rises in portfolio transactions.
“The year started strongly with initial activity outpacing Q1 2021, but the economic implications of Russia’s invasion of Ukraine put a significant dampener on investment activity for the rest of the year,” said Shaffer Patrick, report co-author and senior associate at HVS Hodges Ward Elliott, the hotel brokerage and investment banking division of HS. “Deal flow was further hindered by substantial in