about us | newsletter | contact | archive | members area
Tal Roma, AFI Europe Romania
In 2017, the companies were facing a more competitive labour market»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

Investors pour more money into the booming CEE hotel industry, says Cushman & Wakefield

The investment volume achieved in 2016 totalled almost 1.2 billion Euro with 46 transactions recorded in core CEE hotel investment markets, while in 2015 reached just over 700 million Euro with 45 transactions, shows a press release issued by Cushman & Wakefield.

2017-03-20 16:13:46

Austria was the star performer with almost 800 million Euro transacted, which made up 67 per cent of the total investment volume. In other CEE markets volume was lower than in 2015 with a decline in Poland which more than halved in volume. The Czech Republic accounted for 18 per cent of total CEE investment share; most of the investment took place in Prague which saw 7 transactions including the Hilton Old Town, Park Hotel and Chopin Hotel.

The CEE hotel industry reported growth across all key performance metrics. Increasing number of tourists have chosen CEE destinations, thus occupancy rates returned or even surpassed the pre-crisis levels, reaching 72 per cent on average up from 69 per cent. As the cost of visiting CEE has gone up along with the increasing hotel room rates, profits have been soaring. The average price per room reached 76.6 Euro up from 73.6 Euro in 2015. While the Eastern markets achieved double digit growth in terms of revenue per available room, the more mature markets of Central Europe including Prague and Warsaw saw growth of around six per cent.

"The Romanian hotel industry currently benefits from strong fundamentals and an important growth potential," said Marius Grigorica, senior broker capital markets Cushman & Wakefield Echinox. "The main performance indicators in 2016 benefited from a positive evolution and registered growth rates almost double as compared to other capital cities like Prague and Warsaw. Thus, the Bucharest occupancy rate in 2016 increased by 4.7 per cent as compared to the previous year and the average daily rate (ADR) benefited by 5.8 per cent rise."

In 2017, investors' activity will be notable especially in Hungarian, Austrian and Romanian hotel investment markets, where significant assets are set to be put up for sale or about to be transacted.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  5244 Views
Daily Info
Bucharest wants to expand its Old Town

Bucharest's Old Town, the city's historic district, will expand to include 50 other streets in the city center, Bucharest mayor Gabriela Firea. The Old Town will also include ...

American auto parts producer closes factory in Northern Romania

US auto parts producer TRW Automotive will close its wheel factory in Baia Mare, Nothern Romania.

Telekom Romania launches first loans in partnership with Alior Bank

Telekom Romania, one of the biggest local telecom groups, has launched its first two loans in partnership with Polish lender Alior Bank.

Fondul Proprietatea exits Conpet

Fondul Proprietatea, the fund managed by Franklin Templeton, has sold its minority stake in Conpet, the operator of the oil transport network in Romania.

The state of the economy is a reflection of public policy, says FIC

The Foreign Investors Council (FIC) considers that recent negative economic data which drew the attention of politicians are the result of legislation that was adopted without...

 
 
   
advertising

advertising

advertising

advertising

More on News
ING Bank Romania to accelerate business development through digitization

Customers are increasingly interacting with the bank through its digital platforms and are making more card payments, according to a report issued by ING Bank Romania.

TransferGo: We will come to a point where money transfers will be dominated by app usage

Cash will become obsolete and this will be the result of digital finance advancement, Marius Nedelcu, Country Manager at TransferGo told The Diplomat-Bucharest.

Great potential comes with big challenges

The residential market in Romania registered new record investments in 2017, one of its best years so far - and analysts said the trend will continue for sure this year.

Globalworth: The number of green accredited buildings continues to grow every year

Romania today is one of the few economies in Europe that had a consistent expansion over the past six years, outpacing EU average growth, Dimitris Raptis, deputy CEO and Ch...

UniCredit announces updates in the Mobile Banking application

UniCredit Bank launches new facilities in the up-to-date version of its Mobile Banking application to provide customers with a simpler and faster user experience.

ESOP: We expect that the green building trend further grows

The Romanian market is one of the most dynamic in the region due to the accelerated development in IT&C, BPO, shared services industries, and to the expansion of research &...

Immofinanz: Constant, visible shift towards energy efficiency on the local office sector

Romania's strong economic growth in 2017 placed the country in a leading position in the CEE region and the trend is expected be sustainable over the next years, Christian ...