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2019 European Hotel Valuation Index

February 26th 2019

By HVS Europe

Hotel values across Europe registered another strong year in 2018, showing 3% growth and reaching new highs, according to our annual European Hotel Valuation Index (HVI).

Although more modest growth than that of 2017 at 4%, 2018 saw recovery for many cities as well as a levelling off in values for some markets, which had previously been depressed compared with the European average.

‘While there has been geopolitical uncertainty and instability in Europe, the influence of this on investors, developers and lenders within the hotel sector seems to be continually lessening,’ commented Magalí Castells, senior associate with HVS and co-author of this year’s HVI.

‘Although individual changes in 2018 were much more modest than in 2017, with no double-figure growth, it was a positive year for Europe’s hotels with growth and recovery in many cities, new value highs reached by hotels in many markets and a positive outlook going forward.’

The annual HVI ranks the percentage change in the values of typically four-star and five-star hotels in 33 major European cities, both in euro and local currency terms, as well as ranking each market in terms of the average price per hotel room.

Hotels in Lisbon, Moscow, Paris, Brussels and Berlin filled the top five slots in terms of highest percentage growth in values in euro terms, with Lisbon seeing an impressive 9% uplift, the year’s biggest climber.

Berlin,, recorded another 7% hike in values as the city’s popularity continues to increase. Despite some 1,300 new rooms opening last year, the new supply has been matched by a rise in arrivals, maintaining RevPAR. While the future pipeline in Berlin is also strong, the long-term forecast is positive for the German capital, particularly with the anticipated opening of the new Brandenburg Airport in 2021.