The EMEA hotel market is dusting off the cobwebs and shaking off the effects of the pandemic as it steps into a phase of growth. So said Colliers’ head of hotels EMEA Dirk Bakker during a conversation with Hospitality Investor.
"The market has come out of the doldrums," Bakker says, noting increased activity and investor interest in southern Europe and Mediterranean, with resorts and branded residences commanding significant attention.
“Branded residences are really taking off and popping up everywhere - people pay a premium for branded residences and so it's a money maker. Resorts are also really hot right now and luxury resorts are becoming more popular
The trend is particularly pronounced in Athens and across the Greek islands, Bakker says, while Spain’s more mature market presents a diverse range of opportunities across asset and price classes.
Regarding investor interest, Bakker notes that family offices and owner-operators continue to dominate southern Europe, controlling a substantial share of the market.
“In Spain, it’s about 30 to 40 per cent, 50 per cent in Italy and well over 50 per cent in Greece," Bakker explains.
The influence of these local players underscores the fragmented nature of the market. However, he notes that private equity is making inroads.
“They're seeing the large growth of Greece, and they’ve already discovered that in Spain. So, investing in southern Europe is on everyone’s radar.” He adds that financing is also becoming more available, with banks and private equity becoming more active.
And the appetite for experiences is fuelling progress, a trend Bakker says is set to continue.
“We’re in a very good place. More of the world is travelling and I see more innovation in the industry around experiences and concepts over the next five years as well as continued growth.”