Quantcast
Destinations

Hoteliers are wary of investing in Europe’s opaque hotel market

Excerpt from HotelNewsNow

Nov 09, 2012 7:36 am

Skift Take

Few hotel transactions have transpired in recent quarters leaving investors unconfident when it comes to determining valuations, but one expert believes a boost in optimism is all the market needs to get going.

— Samantha Shankman

The Latest Intelligence on the Travel Industry

Free Report: The Megatrends Defining Travel in 2015

Yortw  / Flickr.com

The Hotel Rott in Prague. Yortw / Flickr.com


The current climate in Europe has produced a virtually nonexistent lending environment in the hotel space…the story for borrowers in Europe, whether they are searching for acquisitions or building new hotels, is the same as it is in other regions: You better have a strong track record and spectacular balance sheet with plenty of equity to invest.

Next to the lack of available financing, the lack of a fully functioning, transparent transaction market in Europe has created an awkward situation, van Marken said. Values are tough to determine because no deals involving comparable hotels have been finalized for buyers and sellers to be able to gauge pricing levels.

Read the Complete Story →

Tags: ,

Next Up

More on Skift

Frankfurt Airport Will Invest $3.2 Billion To Add Its Terminal of the Future
San Francisco Wants to Toughen Airbnb Law at the Ballot Box
American Airlines CEO: It’s Not the Same Old Airline Business Anymore
How Business Travelers Can Benefit from Hotel Loyalty Programs