The outlook for the European hotel industry for 2021 has worsened, says a new survey of industry executives.
According to the 2020 Deloitte European Hotel Industry survey of senior European hospitality figures, including owners, operators, lenders, developers and investors, 90 per cent believe the current disruption will continue until mid-2021, up from 69 per cent three months ago.
However, many do expect a recovery – the number of those surveyed who expect distressed activity falls from 74 per cent in the first half of the year to 16 per cent in the second half.
Just over a half of those responding to the survey, which closed on 1 October, felt that hotel performance – in terms of indicators like occupancy and revenue per available room – would not recover to 2019 levels until 2023; 20 per cent believe this will not happened until 2024 or beyond.
Despite this, there is still interest in investing in the accommodation sector, with particular interest from private equity investors.
The research found that Amsterdam was the most attractive city for hotel investment, followed by London and Paris.
Nikola Reid, director and head of UK hospitality advisory at Deloitte said: “Across Europe, hotel investors continue to look for opportunities in Amsterdam which retains its place as the most attractive European city for investment for the fifth year in a row.
"Second to Amsterdam is London but, as the Brexit transition deadline approaches, investors indicate some caution. For half of this year’s respondents, a ‘no deal’ Brexit scenario would lower London’s attractiveness for hotel investment."