Global consulting company HVS London is predicting that consolidation among major hotel companies will be "one of the key themes of 2015" as large groups seek to grow their business or risk being taken over themselves.
Looking to the year ahead, HVS London Chairman Russell Kett said that "now is a good time to develop, acquire or invest in hotels" as economic prospects are encouraging with demand for hotel rooms increasing and many parts of Europe having capacity for further rooms.
As conditions in Europe’s hotel markets continue to improve, values are mostly on the rise and are expected to continue to do so for the next few years.
HVS London isn't the only optimist in the room: According to the Irish Times, commercial property consultant CBRE is expecting another buoyant real estate market in the year ahead, with large volumes of transactions expected in both asset and loan sales. CBRE also predicts a renewed focus on new developments, particularly in the Dublin hotel markets.
The CBRE report showed that there were 243 investment deals greater than €1 million during 2014 totalling €4.58 billion compared to 96 transactions with a turnover of €1.78 billion in 2013. A notable highlight of the CBRE report was the sale of 63 hotels with an overall valuation of just over €341 million, compared to 33 hotels in 2013 for €160 million.
