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Paris pips London as top European spot for hotel investment

09 March 2017 by
Paris pips London as top European spot for hotel investment

Paris has beaten London to the number one spot in Europe for hotel investment by virtue of having slightly lower development costs.

That is according to Colliers International's Hotel Investment Attractiveness Index, an analysis of the investment climate of 20 European cities.

This is despite predictions that investors and tourists would lose faith in the city due to political uncertainty and the perceived threat following various national security breaches.

London came second, while Manchester also performed highly, where hotel performance exceeds demand. Colliers said the case for an increase in business demand growth in the city looks very strong in the coming years, which should increase its attractiveness to developers and investors.

Colliers scores the locations on data including GDP, tourist arrivals, room occupancy, revpar, land site prices, building costs and investment to rank markets in terms of demand, operating performance, and how this ties into the ‘attractiveness' of each market with regards to acquisition and development.

Dirk Bakker, head of EMEA hotels, Colliers International, said: "Investors are regularly requiring the latest information on cities where they will receive high returns, which in a politically and economically uncertain world, is often difficult to predict. Our index provides us with something more than anecdotal evidence through which to advise our clients."

London hotel values dropped 2.8% in 2016 >>

London second place to Amsterdam for hotel investors >>

Paris hotel occupancy rates halved after terrorist attacks >>

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