Great potential: Hotel properties are a long-term growth market
- November 1, 2023: Vol. 17, Number 10

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Great potential: Hotel properties are a long-term growth market

by Luca Gudewill and Olivia Krebs

Although the hotel industry continues to face challenges, the market still offers great potential for property investment. Despite a shortage of skilled workers, increased labour costs, the energy crises and inflation, the sector has proved to be more resilient than other types of use.

According to the Deutsche Hypo Real Estate Climate Index of June 2023, at 83.7 points the “hotel climate” is significantly more positive than the office and retail sectors (which both registered at 58.5 points). What makes hotels particularly attractive as investment properties is the stability they provide. They can provide long-term contracts and steady cashflows, along with relatively high returns as Europe experiences a significant recovery in demand within the tourism industry.

Significant growth in tourism

Figures for the tourism industry in Europe have almost returned to pre-COVID-19 levels, according to CBRE.

In 2022, the revenue per av

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