No room at the inn: opportunities in European hotels
The latest COVID-19 variant has caused concerns about the broader economic recovery story.
However, we continue to believe that the recent repricing of European hotels presents good opportunities. For example, the opportunity to acquire core hotels for a long-term hold, or value-add projects following a manage-to-core strategy.
Source: Invesco Real Estate as of March 2021.
Although the sector has been hit hard by the COVID-19 pandemic, we believe this is a short-term shock rather than a reversal of long-term positive trends.
Indeed, between 2000 and 2019, the sector’s revenues grew by approximately 3% per annum compared to consumer price inflation of 2%1.
The early stages of the recovery in the third quarter of this year suggest that pent-up demand for tourism, and the slightly later recovery of business travel, will be key drivers for the sector going forward.
Count down to Christmas with our festive charts as we publish a new piece each day. Recognise the images that feature on our calendar windows? Each corresponds to a city where an Invesco office is based.
Related insights
Sources
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1Source: Oxford Economics, 2021.
Investment risks
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The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Important information
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