According to Deloitte’s “European Hotel Industry Survey 2022” presented at the annual European Hotel Industry Conference (EHIC) 2022 in London, Athens is ninth on a list of 10 European cities winning over hotel investors. Completing the list are Amsterdam, Lisbon, London, Paris, Madrid, Barcelona, Rome, Berlin, and Dublin.
Amsterdam remains in 1st place as the most attractive European city for hotel investment in 2023, with Lisbon moving to second place and London falling to third place .
Regarding the investment categories, it seems that hotels are a more attractive investment opportunity compared to serviced apartments. As sources of financing for these investments, 27% of respondents estimate that private equity will remain the main source of equity capital for hotel acquisitions in Europe in 2023.
On the other hand, alternative lenders are the most common source of debt financing in the European hotel market for 2023, while all other sources have lost momentum compared to a year ago, with the exception of traditional debt financing and sovereign wealth funds.
In addition, around two-thirds of respondents (62%) expect investment interest in the European hotel industry to come mainly from Europe, less so from the UK, while increased investment interest is currently emerging from North America, Middle East and North Africa compared to 2021.
Finally, in terms of the European outlook and investment cycle, it is estimated that the United Kingdom (37%), Germany (29%) and Ireland (28%) are on the decline as hotel investment destinations, while Greece (31%) Spain (33%) and Portugal (33%) on the rise.
Vassilis Kafatos, Partner, Clients & Industries Leader and Tourism & Hospitality Sector Leader at Deloitte said the following about the research, but also about Greek tourism: "There is strong foreign investment interest in the Greek tourism sector, both from large funds as well as from established hotel chains. More specifically, the greatest interest is shown in the creation and/or reconstruction of luxury resorts and high-end boutique city hotels both in established tourist destinations and in emerging ones that show significant growth prospects.
European cities with the best real estate prospects for 2023 – Where does Athens rank?