Colliers – EMEA Hotel Capital Flows, July 2024

The European travel and tourism industry is experiencing growth due to events like Euro24 and the Paris Olympics, with forecasts showing arrivals exceeding pre-Covid levels in 2024. Business travel is driving arrivals growth, while spending from APAC and MEA is expected to return to pre-Covid levels. Despite corporate events, Germany may not reach 2019 arrival levels until 2025, while France is expected to exceed 2019 levels in 2024. The UK, Ireland, Spain, and Italy are already performing well. Occupancy is increasing across various hotel types, with ADR growth slowing but RevPAR increasing. Hotel investment is trending higher, with Spain, France, and Italy seeing strong growth. Investors are focusing on 'operational beds' and economy hotels, which are experiencing sharp increases in occupancy and ADR rates. This growth is expected to continue driving investment activity in the hotel sector.