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

Evolving Strategies in Travel Ad Tech and Bookings

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

Skift Business Traveler: Marriott Named the Best Hotel Loyalty Program
How Pharrell’s ‘Happy’ Is Spawning Amazing Travel Videos From Around the Globe
Shangri-La’s New Lhasa Hotel Opens Near the Top of the Himalayas
Top 3 Destination ‘Must Haves’ for Chinese Travelers

We're the Moneyball of the Travel Industry

We know what's coming next in travel. Subscribe to the newsletter and get all the goodness in your inbox daily.