Europe’s Hotels See Values Fall by Up to 15% but Longer-term Outlook Strong

Sharp declines in revenue caused by the pandemic coupled with a more cautious approach to lending has prompted hotel valuations to fall over the past 12 months, although not as steeply as some had initially anticipated. This is the key finding of the annual European Hotel Valuation Index (HVI) compiled by global hotel consultancy HVS, which reports that in the year of the COVID-19 outbreak hotel values saw average declines of between 5% and 15% compared with the previous year.

Colliers 2021 Canadian Hotel Investment Report (PDF Download)

Following a decade long run of largely strong hotel market fundamentals, investment activity fell to the lowest levels since the 2009 financial crisis in 2020 as the weight of the pandemic took hold. While the year was one none of us will soon forget, national and global immunization efforts put a rebound in lodging demand on the horizon and mark the early stages of the industry’s recovery.