Europe’s hotels witnessed their fifth consecutive year of value growth last year, with properties in the UK and Southern Europe seeing some of the biggest gains.
According to the 2015 European Hotel Valuation Index, published this week by global hotel consultancy HVS, hotel rooms in Madrid increased the most through the last year, followed by Manchester, and Dublin.
“Hotels in several cities have experienced significant value increases including Manchester and
Birmingham which have both seen double digit growth following improved performance and growing investor interest,” said report co-author James Heavey, analyst, HVS London.
The city with the biggest value climb was Madrid, with an impressive 14% rise year-on-year. The average value per hotel bedroom in the Spanish capital rose from €185,000 (£143,000) in 2013 to €211,000 in 2014 due to a slowdown in the city’s new hotel supply and renewed international demand for rooms, particularly in the corporate sector.
The second biggest value rise in hotel stock was in Manchester, up 13.5% year-on-year to €167,510 per room. The hike is partly attributable to the lack of new hotels in the city, a situation due to change as Manchester has a development pipeline of some 2,000 rooms opening by 2017.
Dublin hotels recorded the third largest growth in the Valuation Index, with values rising 13% to €203,000 per room. As Irish banks recover from recession, property prices in Ireland have risen 25% in the past year.
This year’s Index reveals that Europe’s most expensive hotel rooms are still in Paris (€703,935), London (€678,222) and Zurich (€534,646), considerably above the European average of €246,641.