In 2022, despite the macroeconomic and international situation, Europe remained one of the most popular travel destinations. Up to 70% of international tourists have chosen European countries as their main destination for travel.
Such a high demand from tourists, the growth of the tourism sector and the corresponding real estate markets attracted the attention of major international investors. Thus, according to the study "Global Hotels Investment Outlook 2023" by JLL, the hotel sector of the European real estate market has once again demonstrated a high degree of activity.
For example, the degree of hotel occupancy reached almost 89% of the indicators of the pre-pandemic 2019. Spain, Italy, Portugal, and Greece took the leading places by country. These are the most popular Mediterranean destinations in the region.
The hotel market will become more profitable this year
As for the prospects for the development of the hotel sector in the remaining period of 2023, it is worth noting the stability of this market to the development of the macroeconomic situation. Including the increase in tension in the global economy associated with expectations of a global recession. So far, tourism and hotels remain strong and positive for growth.
Last year, it recovered even despite economic instability, a number of international crises, disruptions in international supplies and even a shortage of labor in the labor market. And this brings us to the investment attractiveness of the sector for international investors. According to forecasts, 700 million tourists will visit Europe in 2023, which will be a 133% increase in comparison with the explosive figures of 2021, which was marked by an active recovery against the background of the decline of the pandemic.
There is also an increase in the number of new brands and growing volumes of attracted investments in the market. Funds are received not only in the segments of classic resort real estate and hotels, but also in new types of hotel real estate. For example, serviced apartments, colivings and residences with a shared ownership system. In general, the hotel sector in Europe remains stable and is gradually developing new areas of growth.