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Hotel trading expectations across EMEA remain particularly strong


Hotel Investor Sentiment Survey | December 2014

What are the hot markets? Where are inve​stors planning to develop or acquire? Find the answers in our latest Hotel Investor Sentiment Survey.​

Browse global and regional snapshots on this site or get the full HISS

EMEA Highlights

  • Short term trading expectations across Europe, Middle East and Africa reported a slight uptick since April 2014, rising 10 basis points to 65.6%, while investor sentiment for the medium term, has softened slightly falling 60 basis points to 72.9%.
  • At 14.2%, leveraged IRR requirements are 130 basis points below the long term average of 15.5%, confirming the strength of the market, notwithstanding underlying fears of a recession in some Eurozone countries.
  • London reported the lowest IRR requirements at 10%, remaining stable since the last survey.
  • Cap rates are expected to rise slightly to 7.1%, 80 basis points lower than the most recent three-year average of 7.9%. Cap rate expectations are lowest for Edinburgh and London at 5.5%.​

EMEA Stage in the Investment Cycle^

EMEA Leveraged IRR Requirements 2000 to 2014^

EMEA Trading Performance Expectations 2000 to 2014^

EMEA Cap Rate (Initial Yield) Requirements 2000 to 2014 ^

HISS December 2014 - Infographics