30. August 2010 
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322 hotels to open in EMEA in 2012
Construction pipeline by region
Most of the economies in Europe are slowly recovering from the recession. Countries in the Northern tier are generally faring better than those in the East and in the South, like Spain, Portugal and Italy. Greece is the only country still officially in a recession. As Europe’s financial centers recover and investment banking activity accelerates, investors are expected to concentrate on acquisitions, as it will be cheaper to purchase assets than to develop new ones for the foreseeable future.
Europe’s Total Pipeline is now at 721 projects/121,933 rooms. The United Kingdom has the region’s largest with 207 projects/29,353 rooms, making it the 4th largest in the world. 28% of the UK’s Total Pipeline rooms are in London, which has seen an up-tick in development as the city prepares to host 2012 Olympics. As one of the world’s leading financial centers, it is also the principal development target of major investor groups and franchise companies. Germany has a strong Pipeline with 71 projects/15,766 rooms. Driven largely by exports, Germany’s GDP is growing at its fastest pace since the reunification and at a quicker rate than any other country in Europe.
At 427 projects/116,043 rooms, the Middle East Total Pipeline is at the lowest level since early 2007. Dubai’s Pipeline, with 83 projects/26,111 rooms, is declining rapidly but still has the 5th largest in the world. A late starter in the last development cycle, Abu Dhabi, with 67 projects/ 21,187 rooms, is the 7th largest Pipeline. For both, the ongoing devaluation process and the restructuring of balance sheets for governmental entities and banking institutions has seriously curtailed credit. In effect, the building cycle is now near an end. Projects already in the ground have slowed considerably and are awaiting additional financing for completion. Other projects will either remain stalled in the Pipeline or eventually be cancelled. New Project Announcements into the Pipeline will be minimal into mid-decade as the property market seeks stabilization.
European transaction trends
Hotel transactions in Europe have begun to show signs of revival, according to LE’s recent Transaction Trends Report. LE monitored 27 significant transactions in H1 2010. 22, or 82%, involved hotels located in just five countries: the UK, France, Italy, Germany, and Finland. 41% of sellers were primarily private owner/operators, while 22% were public hotel companies. UK-based companies and investment groups made 16 of the 27 purchases. Buyers were mostly private companies (owner/operators, equity funds and hotel companies), which accounted for 23, or 85%, of these transactions.
Most of the economies in Europe are slowly recovering from the recession. Countries in the Northern tier are generally faring better than those in the East and in the South, like Spain, Portugal and Italy. Greece is the only country still officially in a recession. As Europe’s financial centers recover and investment banking activity accelerates, investors are expected to concentrate on acquisitions, as it will be cheaper to purchase assets than to develop new ones for the foreseeable future.
Europe’s Total Pipeline is now at 721 projects/121,933 rooms. The United Kingdom has the region’s largest with 207 projects/29,353 rooms, making it the 4th largest in the world. 28% of the UK’s Total Pipeline rooms are in London, which has seen an up-tick in development as the city prepares to host 2012 Olympics. As one of the world’s leading financial centers, it is also the principal development target of major investor groups and franchise companies. Germany has a strong Pipeline with 71 projects/15,766 rooms. Driven largely by exports, Germany’s GDP is growing at its fastest pace since the reunification and at a quicker rate than any other country in Europe.
At 427 projects/116,043 rooms, the Middle East Total Pipeline is at the lowest level since early 2007. Dubai’s Pipeline, with 83 projects/26,111 rooms, is declining rapidly but still has the 5th largest in the world. A late starter in the last development cycle, Abu Dhabi, with 67 projects/ 21,187 rooms, is the 7th largest Pipeline. For both, the ongoing devaluation process and the restructuring of balance sheets for governmental entities and banking institutions has seriously curtailed credit. In effect, the building cycle is now near an end. Projects already in the ground have slowed considerably and are awaiting additional financing for completion. Other projects will either remain stalled in the Pipeline or eventually be cancelled. New Project Announcements into the Pipeline will be minimal into mid-decade as the property market seeks stabilization.
European transaction trends
Hotel transactions in Europe have begun to show signs of revival, according to LE’s recent Transaction Trends Report. LE monitored 27 significant transactions in H1 2010. 22, or 82%, involved hotels located in just five countries: the UK, France, Italy, Germany, and Finland. 41% of sellers were primarily private owner/operators, while 22% were public hotel companies. UK-based companies and investment groups made 16 of the 27 purchases. Buyers were mostly private companies (owner/operators, equity funds and hotel companies), which accounted for 23, or 85%, of these transactions.
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