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Five-star quality: The hotel sector has undergone major changes post-COVID that have disrupted previous operational norms, but a recovery is under way, and the future could be bright
The European hotel sector has had to come to terms with a number of changes following the COVID-19 crisis. From interruptions to previously long-established operational standards, to a shift in investment focus, the market has had to adjust to a number of tough new realities.
Mercifully, these challenges have been somewhat masked. As travel restrictions ebbed away and pent-up demand among tourists from regions such as the United States was boosted by favourable currency exchange rates, a clear recovery was under way in 2022.
Hotel values across Europe rose by around 3 percent in 2022, with Paris, London, Zürich, Amsterdam and Rome posting the highest-valued hotels, according to the HVS European Hotel Valuation Index. Valuations rose due to a number of gateway cities achieving higher RevPAR levels by December 2022 when compared with December 2019, owing to the significant uplift in leisure demand, as well as corporate travel returning to around 75 percent of its pre-pa