CBRE hotels has reported that investment into European Hotels totalled €3.7bn in the first quarter of 2016. PwC’s latest predictions show that Eurozone GDP will continue to expand by around 1.6% in 2016 and 1.7% in 2017. Strong investment from North America and high visitor numbers from the US are expected to continue. However, this year was always unlikely to beat 2015’s record performance, and Q1’s transaction volumes have indeed reduced by 30% year on year.

In these videos hospitality experts discuss the European Market in 2016:

According to CBRE, hotels continue to have 8% share of European real estate. Performance does of course vary in the different markets across Europe. CBRE’s report shows that Belgium and Italy have had an increase in transactions in Q1 2016 whereas UK and France have seen a decline. CBRE says Germany is becoming the most attractive Market and Eastern European cities have more room for growth than cities in the west.

Growth in Europe is levelling out and will slow into 2017 and beyond according to PwC. PwC is predicting that Rome will have the biggest RevPar growth in 2016 at 19.2% however in 2017 this will drastically slow again in 2017 (-14.9%) when Dublin will have the biggest growth at 8.2%. The report says that in 2017, most cities, except Geneva and Zurich, will see further ADR growth.

There are a number of geopolitical issues that could also affect growth including Brexit, which our experts discussed in a recent hospitality briefing.

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.