The pandemic has disproportionately affected the hotel and hospitality sector in a negative way throughout Europe. In our recent report, CBRE’s local experts from all over the continent highlight the similarities and differences between the countries and indicate where the best opportunities may be found.
In the Nordics, we expect an uneven rebound from summer 2021 onwards, as travel restrictions ease. Naturally, domestic leisure travel will lead the way. Intra-regional leisure and business travel in the Nordics will likely follow suit, while most long-haul travel will wait.
Throughout Europe, we are experiencing tremendous investor interest in acquiring hotel assets. Smart capital is chasing returns in the hotel and hospitality industry, and operating assets in leisure markets are receiving the most interest, for now. As logistics and residential assets become pricier and the future of the office is uncertain, we expect the interest in hotels to strengthen.
It seems likely that there will be a catalyst effect from the pandemic and that many changes initiated before lockdown will be sped up as society opens. Sustainability initiatives and digitalization will enable us all to work, shop and play in different ways. This will affect the demand for travel, hotel and hospitality services in all markets, and the “new normal” may look very different for some players in a few years’ time.
Keep your eyes on this blog for frequent updates. Enjoy the report which can be downloaded here.