According to the HVS 2015 European Hotel Valuation Index, Europe’s hotels experienced their fifth consecutive year of value growth last year, with properties in the UK and Southern Europe seeing some of the biggest gains. The city with the biggest value climb was Madrid, with 14% growth year-on-year and a rise of average value per hotel room from €185,000 (US$207,100) in 2013 to €211,000 (US$236,200) in 2014.
“Potential investors are looking at Madrid, and beyond, to acquire cut-price assets ahead of the expected growth of the next few years,” said James Heavey, the report’s co-author.
This year’s index also found that Europe’s most expensive hotel rooms are still in Paris, London and Zurich, considerably above the European average of €246,641 (US$276,100).
“The trend for improving values should be sustained in the foreseeable future,” added co-author Sophie Perret.