Madrid Is The 3rd Most Attractive City For Hotel Inv’t
19 May 2017 – Iberian Property
This list is based on factors such as the overnight visitor market, GDP and employment growth forecasts, stock levels relative to demand and indicative prime yields as of Q1 2017. Dublin and Milan head the list, in 1st and 2nd positions respectively.
After Madrid, London is in 4th place, followed by Barcelona in 5th, Amsterdam, Budapest, Rome, Paris and Berlin, the final city in the top 10.
According to this report, the top 10 cities have strong perspectives relative to income security alongside capital preservation and capital growth.
Tim Stoyle, head of hotels valuation at Savills, comments, “The analysis highlighted there are still a number of cities in Europe that offer good ‘value’ prospects in light of the outlook for operational performance going forward.” He went on to give Dublin as an example: “Dublin for example has been one of the best performing European cities in terms of RevPAR (revenue per available room) growth over recent years, which looks set to continue as new development remains constrained,” quotes Europe Real Estate.
Rob Stapleton, Director of the Hotels team at Savills, adds that, “Across Europe, we are seeing increasing interest from investors looking for both the income and capital value growth provided by hotels. Dublin has experienced a recent rise in institutional investment whereas markets like Milan and Madrid are being driven by private equity investors and owner-occupiers looking for hotels with both development and income growth potential.”
Original story: Iberian Property
Edited by: Carmel Drake