Hotel Values Fall in 2001

The value of hotel properties fell by an average 2.6% across Europe in 2001, compared with an increase of 7.8% in 2000, says consultancy HVS International.

The value of hotel properties fell by an average 2.6% across Europe in 2001, compared with an increase of 7.8% in 2000, says consultancy HVS International.


Its European Hotel Valuation Index shows the largest gains in value were enjoyed by hotels in Moscow (16.9%), Milan (6.6%), Frankfurt (6.4%), Munich (5.1%) and Berlin (3.8%).
The largest falls in value were experienced by hotels in Istanbul (14.2%), London (13.3%) and Hamburg (9.1%).
For 2002, HVS International expects hotel values across Europe to see moderate growth of only 1.3%, with only five markets seeing values decline, mainly as a result of increased supply through new hotels being built. These markets are Barcelona, Copenhagen, Dublin, Madrid and Warsaw. For 2003, HVS expects values to rise by 3.9%. The European Hotel Valuation Index 2002 was launched at the International Hotel Investment Conference being held this week in Berlin, Germany.


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