EU Reaches 5.2 Million Rooms
European Union hotel supply has recorded a similar growth to last year to now reach 147,000 hotels and 5.2 million rooms
Over 80,000 hotel rooms have been added to EU hotel supply, half of which in Spain, Germany and Italy – markets with an already mature, if not oversupply.
According to MKG Hospitality, the EU is experiencing a certain level of restructuring, with outdated independent properties fading in favour of new economy-budget hotel products, particularly in France, Germany and the UK. Chain hotel are also strengthening their position, now with almost 11,500 hotels and 1.3 million rooms, representing just over 26% of total number of rooms.
“This is still much lower compared to the chain penetration rate in the US, where it reaches 70%, as Europe historically revolves around independently- and family-owned properties. However this is changing fast, with brands becoming the preferred option,” sates Director of Development, MKG Hospitality, Vanguelis Panayotis.
“As expected, the growing difficulties to find good sites, especially downtown locations, and at reasonable prices, has compelled most European-based hotel groups to favour franchising during this period of development,” adds Panayotis.
Despite traditionally low bank rates, repayment due dates should also force more real estate asset transactions throughout Europe. As the recovery continues, investors in a financially healthy position will be encouraged to pursue these new opportunities.
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