European Hospitality Doing Well Despite Eurozone Crisis

European Hospitality

European Hospitality

 

Hotels in Europe are doing well in spite of the ongoing Eurozone Crisis, according to the latest numbers from the European hospitality industry. Although the Eurozone Crisis has made it hard for the expansion of hotels in Europe, the hotels in Europe that currently exist are meeting the numbers they had at this time in 2010.

Hotels in Europe Performed Well This Year

Despite the ongoing instability in the European economy and the Eurozone Crisis, 51 percent of the hospitality chiefs said current trading is stronger than anticipated, while 17 percent said it is unchanged and 12 percent said it is worse than expected. Investment sentiment continues to favor luxury hotels in Europe in prime gateway locations, such as London and Paris. Significant investment in the refurbishment, re-positioning and acquisition of luxury hotels in Europe has been seen since the start of the financial crisis in 2008, demonstrating the resilience of markets where barriers to entry remain high and investment capital is seeking opportunities.

Hotels in the UK Expected to Flourish Through 2012

This may be due to the anticipation of the London 2012 Olympics, but hotels in the United Kindgom are projected to do well through the rest of the year and through 2012. Britain was named the most popular choice of destination for new hotel projects in a survey conducted by Deloitte, with 46 percent of respondents choosing it over four other major European hospitality markets – namely France, Germany, Italy and Spain. London hotels are doing much better than hotels in Europe in general, with an 11 percent higher year-to-date performance than 2010 and 13 percent ahead of its previous peak. When looking at 2012 and beyond, London and the rest of the hotels in the UK are expected to at least remain firm where they are in 2011.

Rest of the Hotels in Europe to be Steady through 2012

Many hotels in Europe, particularly in the southern and western regions, are still below their peak levels. The Eurozone Crisis is particularly hitting this region the hardest, as hotel developers are finding it difficult to secure the lending necessary to make the expansion of hotels in Europe possible. Starwood Hotels and Resorts Worldwide has been slowed of its expansion of hotels in Europe because of the lending problems. All loans not linked to Germany or Poland are being stopped, and many banks in those countries are cutting back on real estate lending.

Overall, the Eurozone Crisis has made it hard for the construction and the expansion of hotels in Europe, but the current European hospitality industry as is doing well and maintaining itself. It may still be a while before the continent is able to see significant growth again, but the good news is that the industry isn’t falling apart.

Image Source: askmesolution.com

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Leave a Reply

Your email address will not be published.

Recent Posts

Cryptocurrency Market Updates: Bitcoin Could Hit $500,000 Per Coin

Cryptocurrency Market Updates: Bitcoin Could Hit $500,000 Per Coin

On March 15, Novogratz went so far as to predict that the Bitcoin future price will reach half a million dollars per coin by 2027. He made this statement at the Bitcoin 2022 confer
4 hours ago
Klarna CEO Uses Pre-Recorded Message For Laying Off Employees

Klarna CEO Uses Pre-Recorded Message For Laying Off Employees

Managers and HR personnel must be coached on how to compassionately convey the message as it is one of the most difficult conversations an individual can have. Open and honest comm
6 hours ago
China Might No Longer Be An Apple Manufacturing Country

China Might No Longer Be An Apple Manufacturing Country

The iPad manufacturer has previously sought to remove China as the main Apple manufacturing country. Trade tensions and a strict Covid-19 policy has previously resulted in supply c
1 day ago
D.C. Refuses to Let Zuckerberg Wash His Hands Off Cambridge Analytica

D.C. Refuses to Let Zuckerberg Wash His Hands Off Cambridge Analytica

In the same year, Racine had sued Meta, then known as Facebook, for failing to protect user privacy and deceiving them about how much data is collected and how it was used. The Att
1 day ago
Electronic Arts Shops Around For a Buyer

Electronic Arts Shops Around For a Buyer

However, Byers sheds light on the most recent Electronic Arts news saying, “Several sources familiar with these talks say EA has been persistent in pursuing a sale, and has only
2 days ago
EV Adoption Rates Helps Bring Down Global Oil Demand

EV Adoption Rates Helps Bring Down Global Oil Demand

Although electric car adoption rates are heartening, it is the electric two- and three-wheeler segment that has brought about a major shift in demand for oil. Especially popular i
2 days ago