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Cushman & Wakefield European Lodge Investor Compass 2024 – Picture Credit score Unsplash+Â Â Â
Cushman & Wakefield‘s Lodge Investor Compass survey canvasses the views of 60 main buyers energetic throughout the area, who collectively invested €18 billion between 2019 and 2023 in motels and have a median fund measurement of €233 million accessible for resort funding in 2024.
The analysis exhibits investor demand closely pivoting in the direction of southern European markets, with the Iberian Peninsula and Italy garnering the highest funding curiosity scores. Spain and Portugal’s elevated curiosity is especially vital, seeing a 17% uptick from 2022.
Madrid and Barcelona high the record of cities the place funding curiosity is strongest, adopted by Paris and Rome. Contributing to this, Barcelona noticed the largest improve in attractiveness relative to 2022 (+10%), whereas Lisbon noticed an 8% improve and Madrid a 7% rise.
A considerable 78% of the buyers surveyed intend to deploy the identical or extra capital into European motels this 12 months in comparison with pre-pandemic 2019 ranges. Worth-add alternatives are being aggressively focused, with 92% of respondents targeted on this technique of buying property requiring repositioning or average capital expenditure. Practically half of buyers are planning to be internet patrons in 2024.
Findings of the survey additionally level to the premium buyers anticipating to pay for motels with superior ESG credentials. On common, respondents indicated they count on to pay a 5.5% premium versus non-certified properties for these attaining the very best degree of ESG certification reminiscent of BREEAM Excellent or LEED Platinum scores.
There’s a sturdy pull in the direction of funding in upscale resort segments, together with luxurious and upper-upscale, that are seeing the largest will increase in investor demand versus 2019, 53% and 46% respectively.
When requested concerning the degree of attractiveness of lodging varieties, buyers indicated that essentially the most engaging had been resorts (74%) and serviced house (59%) properties.
