Euro-zone outpaces the rest

The value of hotel deals struck last year in countries that have adopted the euro exceeded the volume of deals struck elsewhere in Europe, according to dealbroker Insignia Hotel Partners. Director Chris Rouse said this was the first time transactions in the so-called euro-zone had exceeded the combined amount in the UK and other non-euro-zone countries. The value of hotels bought and sold within the euro-zone during 2000 reached an unprecedented €3b. This was a jump of almost a third on 1999's total of €2.1b, itself a 50% increase on the 1998 figure of €1.4b. In comparison, the UK had seen more of a rollercoaster performance over the period, said Rouse, with a five-year low being followed by an "extraordinary corporate-led rush of deals" in 1999 totalling €4.5b. But this fell back to €1.75b last year, reflecting a slower level of corporate activity and a notable shortage of hotels for sale in London. Other non-euro-zone countries such as those in Eastern Europe and parts of Scandinavia notched up a 100% increase in the value of deals last year. The total here reached €1b, representing around 30% of the non-euro-zone total. "We believe the stability of the investment environment in Europe will lead to a further increase in the rising levels of hotel investment we have seen," Rouse concluded.