The number of four- and five-star hotels in major European cities is running below demand. This category of hotels has good long-term fundamentals.
The price of hotel properties has fallen considerably over the past ten years in most European cities. The excess debt of some owners and their inability to invest in hotel renovations has created an opportunity to acquire hotels with significant potential located in the centre of major European cities.
In addition, Europe continues to be the world's leading tourist destination and major European capitals draw the wealthiest and most demanding travellers. The improving global economic environment and increasing business and tourism travel are providing a boost to the European hotel industry.