Deloitte names Amsterdam top hotel investment destination

UK: Deloitte’s European Hotel Investment Survey reveals Amsterdam as most attractive European city for hotel investment

Amsterdam was found to be the most attractive European city for hotel investment for the second year running, according to an annual survey of senior hospitality industry leaders conducted by Deloitte.

92 senior hospitality figures from across the world, including owners, lenders, developers and investors were asked questions about key trends in th European hotel investment market.

Almost a third (32%) of respondents ranked the Dutch capital as  the most attractive hotel investment destination in Europe. Barcelona (25%) and Dublin (25%) followed, while last year’s second-place city, London, slipped to fourth (23%, down from 32% in 2016). Madrid (22%) completed the top five.

Andreas Scriven, head of hospitality and leisure at Deloitte, said: “It is not surprising to see London slip down the pecking order, with concerns of over-supply, high pricing and uncertainty starting to bite. Investors may be questioning how much value they can get out of the city, despite the weak pound and the city being a standout destination for both business and leisure… Amsterdam can expect to see further inbound investment. We are also seeing evidence of Barcelona and Madrid being highly sought-after from North American private equity houses, driven by Spain’s economic recovery, favourable yields and asset availability.”

Almost a third (32%) of hotel investors expect millennials to drive business for the hotel and leisure sector over the next five years.  Only 16% of respondents thought that baby boomers were likely to drive revenue in the short term, despite this age group having proportionally greater levels of disposable income.

For the fourth consecutive year, almost half of the respondents identified Edinburgh as the most attractive hotel investment destination in the UK outside of London. Manchester (39%) retained second-place, with the university towns Cambridge (30%), Oxford (29%) and Bath (13%) completing the top five.

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