European investment volumes in 2024 are expected to grow by between 15 per cent to 25 per cent compared to 2023, research from JLL has revealed.
JLL Hotels & Hospitality Group’s latest Global Hotel Investment Outlook found that urban markets are proving to be one of the most appealing for hotel investment, with 84 per cent of hotel investors surveyed in its 2023 Hotel Investor Sentiment Survey expected to deploy the bulk of their capital towards urban markets over the next 12 months.
The report forecasts positive revpar growth and opportunities for increased global hotel investment in the coming year, aided by the events calendar, a surge in international travel and an improvement in capital market conditions.
What they said
William Duffey, head of EMEA Hotels and Hospitality Capital Markets at JLL said: “Last year was characterised by capital market dislocation and rising geopolitical tensions. However, despite this, the European lodging industry defied the broader economy. It demonstrated its resilience, reaching a full recovery of revpar and surpassing 2019 levels.
"Looking ahead to 2024, we are optimistic about the European hotel industry. There is a consensus that the European Central Bank will begin to cut rates at some point in 2024, providing much needed clarity for investors. As a result, we expect hotel investment volumes to accelerate, likely exceeding 2023 by 15 per cent, with urban markets such as London and Paris to attract the most investor interest. Investors who prioritise innovation and remain nimble will have the opportunity to acquire quality assets in the sector and grow their portfolio.”