Money Buzz! Europa

Tag: hotel

  • Covid-19 pandemic caused losses of 1.98 billion euros to the Accor hotel group

    Covid-19 pandemic caused losses of 1.98 billion euros to the Accor hotel group

    The French hotel group Accor announced on Wednesday that last year it registered a net loss of almost two billion euros and its activity decreased by 60%, AFP reports.

    Accor, the owner of brands such as Ibis, Sofitel, Novotel, Mercure and Pullman, said that its turnover fell to 1.61 billion euros and lost 1.98 billion euros.

    Also, disposable room revenue (RevPAR), a benchmark in the hotel industry, fell by 62% last year, and even by 88.2% in the second quarter, due to the Covid-19 pandemic.

    Despite the crisis, Accor opened 205 hotels in 2020 and has a portfolio of 5,139 hotels in 110 countries. 82% of these new hotels were open at the end of December.

  • When the European hotel industry will recover from the impact of Covid-19

    When the European hotel industry will recover from the impact of Covid-19

    The current disruption of the European hotel industry will continue until mid-2021 and the recovery period will be significantly longer.

    51% of hospitality owners, lenders, developers and investors expect to reach again the 2019 performance levels in 2023 and 20% believe it will not be until 2024 and beyond, according to the latest edition of Deloitte European Hotel Industry Survey.

    In addition to the disruption caused by the COVID-19 pandemic, the European hotel industry needs to tackle other risk factors, the study shows, such as demand fluctuations (72% of the European respondents) and the lack of economic growth (60%).

    Additionally, the UK respondents (40%) mentioned Brexit as a key risk for the local hotel industry, the study shows.

    Amsterdam, London and Paris remain the most favorable European cities to investments

    Even if the hotel industry has seen a decline in investment appeal in the context of the health crisis, with a total decrease of 25% in 2020 compared to the previous year, the most favorable European cities to investments in 2021 remain Amsterdam, London and Paris.

    Amsterdam, which has led the ranking for four years, continues to be the most attractive city for hotel investments, followed by London and Paris, while Berlin leaps ahead to the fourth position from the 16th in the previous year.

    In addition, the survey highlights that serviced apartments – fully furnished apartments available for short and long-term stay, providing amenities similar to hotels – become the most attractive European asset in which to invest in 2021, due to positive demand fundamentals and leaner costs.

    In terms of sources of equity capital for hotel acquisitions, private equity investments is predicted to remain the preferred one, as respondents sentiment almost doubled in 2020, with an increase of 22% compared to the previous year.

    At the opposite side, the interest in acquisition of the institutional investors and the real estate funds might register a moderation in 2021, as the demand from them was down by 9% and 10% points respectively in 2020 compared to 2019.

    The study also emphasizes that senior bank lending is expected to remain the most common source of debt financing in the European hotel market, according to two-thirds (66%) of the respondents, followed by the real estate investment funds (40%) and distressed debt funds (36%).

  • The hotel sector in Romania is struggling to survive

    The hotel sector in Romania is struggling to survive

    2020 represented a challenging year for everyone, especially for the hotel sector. The first official COVID-19 case in Romania was announced at the end of February 2020 and was followed by a national lockdown and border closure at the end of March 2020.

    During the summer period, travel restrictions were eased; however, the uptick of COVID cases led the government to reinforce the restrictions and Romania remains in a state of alert.

    The high performance achieved in 2019 was preparing hoteliers for an optimistic year in 2020.

    However, the reality is that the Romanian hotel market recorded an average fall in profit by 73% in YTD October 2020, compared to the same period in 2019.

    In terms of hotel KPIs, YTD October 2020 data revealed by STR shows that Romania achieved an average occupancy of 24% and ADR of RON 293.

    This translates to a 72% decline in RevPAR for YTD October 2020 when compared to the same period in 2019.

    Although projecting performance for such an uncertain period is difficult, according to the current survey, Romanian hoteliers are forecasting an average annual occupancy of 31% for 2021.

    Most of the respondents believe that their properties will achieve a maximum occupancy of c. 40%, while only 7% account for a projected occupancy level of c. 70%.

    In terms of ADR, hoteliers are expecting an average rate of RON 197 in 2021.

    This represents a significantly lower ADR compared to the YTD October 2020 provided by STR, and this lower rate forecasted may be an indication that hoteliers will be focusing on maximizing occupancy during the recovery period, as highlighted in the previous survey.

    Additionally, as the recovery period will be led by domestic travellers, the hoteliers may be strategizing a lower ADR in order to appeal to the domestic segment. 

    Furthermore, 89% and respectively 87% the hoteliers expect the revenue generated from Restaurants and Conference/Event facilities to be highly important when forecasting their hotels’ performance in 2021.

    In third place was the revenue for Spa and Wellness, with 56% of the respondents indicating that this revenue generator is important to support sustainable revenue for their properties.

    While hoteliers are trying to decrease operation costs, the current survey highlights that as of October 2020, an average of 35% of employees have been laid off. Comparing this result with the previous survey performed between April and May 2020, this figure has increased by 6%.

    Therefore, governmental support is urgently needed to protect employment in the hospitality sector to minimize further lay-offs that will impact the livelihoods of people.

    Most importantly, 65% of the respondents reported that without governmental support, their hotels will not be able to survive beyond March 2021.

    In contrast, only 7% of the respondents mentioned that their business can survive for more than one year. Therefore, the survival and recovery of the Romanian hotel sector will remain dependent on governmental support in 2021.

    Recovery and future outlook

    Despite the short-term challenges that the Romanian hotel sector is currently facing, the long-term outlook for the sector remains positive, as evidenced by the robust tourism growth in recent years, healthy pipeline, attractiveness of the country as a leisure and business destination.

    In fact, according to Oxford Economics, the number of nights spent in paid accommodation in Romania is expected to already reach pre-crisis levels by 2023.

    Looking ahead, hoteliers are keeping their morale up, with most respondents indicating their intention to stay open in 2021, as long as no further lockdowns are implemented.

    On the other hand, 20% of respondents are considering closing their hotels during the low season to save costs amid the lack of demand. Some hoteliers, 3%  of the respondents, are planning a strategy shift to change their concept to long-term stays (above 6 months) in 2021.

    Although hoteliers are trying their best to survive this challenging period, it is important to highlight that continued governmental support is imperative to the recovery of the Romanian hotel sector.

    The current survey indicates that 40% of hoteliers believe that a faster recovery can be ensured when travel and interior events restrictions will be eased, and if the government is able to offer financial and wage support.

    Additionally, 10% of the respondents see the benefit of implementing governmental travel incentives which can produce an increase in domestic demand. 

    All results are part of an survey prepared by Cushman & Wakefield in partnership with FIHR, targeting Romanian hoteliers.

  • Italian startup Vikey raised €800K new investment round

    Italian startup Vikey raised €800K new investment round

    Vikey has closed €800K in a new investment round with the participation of CDP Venture Capital Sgr – Fondo Nazionale Innovazione – through the AccelerOra! Program – Italian Angels for Growth (IAG), LVenture Group, and other business angels.

    With this new capital increase, the startup’s total funding rises to €1.6 million.

    Using Vikey’s contactless technology, hosts can accept all reservations (even last minute), increasing the occupancy rate, while saving time and costs, if compared to traditional check-in procedure.

    Vikey has developed a hardware and software solution for hotels and apartments intended for hospitality use, to open the accommodation’s door directly via smartphone.

    Their system manages all aspects of check-in and check-out, including sending documents and paying for upselling services.

    Vikey has recently signed national and international partnerships with major players in the hotel and alternative hospitality sectors, such as Altido (owner of 1,800 real estate properties, which is now affiliated with Vikey in 25 European cities).

  • Hoist Group to acquire the shares in Acentic Holdings

    Hoist Group to acquire the shares in Acentic Holdings

    Hoist Group has agreed to acquire the shares in Acentic Holdings Ltd with the aim to deliver a greater proximity and a wider range of services to hotel customers across Europe, Middle East and Africa markets.

    Acentic will bring a number of flagship hotel groups as well as leading independent hotels that have been served successfully for many years with its IPTV and Digital Signage products.

    These 700+ Acentic hotel partners will now gain access to the much broader set of products offered by Hoist Group.

    Hoist’s services cover most digital touchpoints in a Guest’s Journey: Booking Engine, Pre-Check-in, PMS, Mobile Key, staff task management, Dashboard, etc. Moreover, hoteliers will be able to benefit from Hoist Group’s local staff presence in 20 offices across EMEA.

    In 2019 Acentic posted 28mn€ in annual turnover to Hoist Group’s 130mn€.

  • The average price per hotel room in Athens crash under €100 per night

    The average price per hotel room in Athens crash under €100 per night

    The average price per hotel room in Athens was €78.95 in January-July 2020, from €105.57 in the same period last year, shows ekathimerini.com

    In July, it decreased even more at €69.49, from €121.32 a year ago.

    Earnings per available room fell 62% this year, to €30.99, from €81.56 in January-July 2019. In July 2020, earnings were down 76.7%, from €108.69 in 2019 to €25.36 this year.

    Data was provided by the Athens, Attica and Saronic Gulf Hoteliers’ Association and GBR Consulting.

  • Hotels in Romania record all-time low figures in 2020

    Hotels in Romania record all-time low figures in 2020

    A survey, prepared by Cushman & Wakefield in partnership with FIHR, targeting Romanian hoteliers was launched in April 2020 to understand the impacts the COVID-19 pandemic holds on the commercial lodging industry.

    The survey asses the ways in which business have been affected while identifying the critical factors to prevail from the crisis.

    The first cases of the coronavirus in Romania were announced on the 26th of February 2020, causing the government to call for a state of emergency by March 14 and restrict all international travel.

    While the sector recorded a 5% growth in overnight stays in 2019 compared to 2018, the ongoing COVID-19 outbreak and consequent government restrictions caused an unprecedent crisis for the industry.

    Taking into consideration the current market conditions and limited governmental support provided, 80% of hotels indicated being able to financially survive up to fourth months under the crisis conditions.

    Given that the survey was conducted between the months of April and May and that demand has not yet returned, the survival threshold for the majority of hotels will be reached in August. Although considerable efforts have been made by hoteliers to reduce operational costs, governmental support is urgently needed to protect employment in the hospitality sector.

    Similar to other countries across CEE, COVID-19 required hotels in Romania to shift priorities towards reducing overall operational expenses alongside sales & marketing costs in parallel to managing the influx of booking cancellations.

    On a Human Resource perspective, 80% of respondents focused on utilizing the subsidized leave provided by the government to address the COVID-19 crisis.

    Overall, Romanian hoteliers** revealed the actions taken towards diminishing the headcount to be positioned above average in CEE with hoteliers having reduced staff by 29% compared to a 24% average across CEE.

    Despite borders having reopened to the European Union as of June 1st, the difficult H1 calls for further staff reductions with combined redundancies reaching 38%.

    Government support leaving hoteliers wanting more

    Romanian hotel respondents expressed the highest level of dissatisfaction amongst other CEE countries with 85% of hoteliers stating unclear information being communicated by national authorities.

    Despite the satisfaction level for governmental support being relatively low, it is recorded to be higher than other CEE countries with 15% of hoteliers** being satisfied compared to 10% in other countries.

    As hotels reopen and prepare themselves for a road towards recovery, uncertainty remains on the ability to benefit from the support put forward by the government.

    Only 25% of hoteliers indicated having a clear understanding on how to be granted with access to the proposed support, while the vast majority remains unsatisfied with the ease of accessibility to such aid.

    While in many other countries governments already announced a specific help to tourism and hotel sector, for example direct financial grants in the Czech Republic, travel vouchers in Poland and aggressive campaigns promoting domestic tourism in Germany, there has been limited help to Romanian hotels so far.

    The road towards recovery

    In the weeks between April 24th and May 25th, 75% of hoteliers expressed being either ready or extremely ready to reopen their properties, with 87% being confident on being able to ensure the safety of both guests and employees.

    As hotels have reopened and others continue to prepare for reopening, hoteliers in Romania have expressed placing the safety of guests and employees at the heart of their strategies towards recovery.

    With COVID-19 causing major concerns among travellers and hotel personnel, the vast majority of respondents indicated being in favour of a new health and safety certification being established in Romania.

    Looking ahead

    The opening of European borders and lifting of travel restrictions has enabled the majority of hotels to re-open and enter the recovery phase despite the limited support provided by authorities.

    While very soft demand remains of most concern, hoteliers will also face challenge caused by increasing supply with several notable additions expected to open throughout the summer season.

    In comparison with other markets in CEE, Romanian hotels are less depended on international demand with nearly 80% of arrivals being domestic. While this factor will certainly help with the recovery, the slow anticipated return of business travel remains a concern, due to corporate demand acting as a major driver of occupancy in Romania.

    Nonetheless, multinational companies have recently expressed interest in relocating to Romania which will contribute towards boosting business demand on the medium to long term.

    In addition, while likely to primarily impact hotels in Bucharest, the European Football Championship planned for next year is hoped to have a positive impact on hotel performances and mark the recovery process towards driving healthy occupancy and ADR levels.

    The long-term outlook for the Romanian hotel sector remains positive, underpinned by the healthy tourism growth in recent years as well as continuous attractiveness of the country for international businesses, driving corporate and conference demand.

    Nevertheless, according to Oxford Economics, the number of nights in paid accommodations in Bucharest is expected to reach pre-crisis levels only between 2023 and 2024, but show a healthy growth in the following years.

  • Bucharest: Developers have a pipeline of projects in the Calea Victoriei area

    Bucharest: Developers have a pipeline of projects in the Calea Victoriei area

    Calea Victoriei in Bucharest, the 2.8-kilometer-long artery between Piața Victoriei and Piața Națiunilor Unite, will continue to grow as an office and hotel hub in the upcoming years, with the developers’ plans to build seven new office buildings and six hotels as a result of investments that could exceed the 300 million euros threshold, according to an analysis of Cushman & Wakefield Echinox real estate consulting company.

    The new office buildings will provide a gross leasable area (GLA) of ​​over 100.000 square meters, and the hotels would add to the offer over 700 rooms rated at four and five stars.

    Currently, in the Calea Victoriei area, there are 12 office buildings with a GLA of ​​about 55.000 square meters, representing less than 2% of the modern stock of Bucharest.

    Regarding the hospitality offer, the area is the most developed in Bucharest, with over 2,000 rooms in four and five stars rated hotels, representing about 30% of the accommodation capacity of the Capital in this segment.

    The most advanced projects are the Autograph by Marriott Old Town hotel, which will have 214 rooms, respectively the office projects Millo Offices, Tandem Offices and Dacia One, with a leasable area of ​​about 40.000 square meters.

    Regarding the investments volume, taking into account this area cost of land, which is among the most expensive in Bucharest, they can be estimated at over 2.000 euros / sqm of office GLA and between 100.000 and 150.000 euros per four or five stars hotel room.

    Thus, the development value for the construction of the proposed office buildings can be estimated at over 200 million euros, while hotels could attract a budget between 75 and 110 million euros.

    The most recent completed investments in this area are the Moxy Old Town Hotel on Doamnei Street, which has 119 rooms, and Victoriei 109 and Mendeleev Office 5 office buildings with a total GLA of ​​over 10.000 square meters.

    Calea Victoriei, the most representative high-street location of Bucharest

    Calea Victoriei is considered the most representative high-street location of Bucharest, attracting over time a series of premium and luxury fashion brands, such as COS, Hugo Boss or Gucci.

    In the recent years, it tends to become an area for promenade, especially in the evenings and on weekends, when people can better observe the dozens of palaces and representative buildings that host museums, cultural spaces or public institutions.

    In addition, Calea Victoriei is an important destination in terms of restaurants, bars and cafes located in the ​​Amzei – Romanian Athenaeum or Lipscani – Smârdan (Old City) areas.

    Office projects proposed for development in Calea Victoriei area

    ProjectGLA (sq m)DeveloperStatus
    Luterana Development26,400GlobalworthIn planning
    Doamnei 7-9-1120,000S+B GruppeIn planning
    Dacia One15,000AtenorIn construction
    Tandem Offices15,000Forte PartnersIn construction
    Casa Manu Offices*15,000StrabagIn planning
    Millo Offices9,000Forte PartnersIn construction
    Ştirbei PalaceTBDHagag EuropeIn planning
    TOTAL100,400  
    Source: Cushman & Wakefield Echinox, *unofficial name

    Hotel projects proposed for development in the Calea Victoriei area

    ProjectNumber of roomsDeveloperStatus
    Autograph by Marriott Old Town214Apex AllianceIn construction
    Oscar Maugsch Palace250*Dayan FamilyIn planning
    Georges Clemenceau 8-10100*Conlux DevelopmentIn construction
    Hotel Palas100*Hoffmann AutotechIn construction
    Grand Hotel du Boulevard50Niro GroupIn construction
    Calea Victoriei 22250*Private investorIn planning
    TOTAL764  
    Source: Cushman & Wakefield Echinox, *estimated

  • Less than 1/3 of the hotels on the Black Sea coast have welcomed tourists

    Less than 1/3 of the hotels on the Black Sea coast have welcomed tourists

    Capital.bg shows that until July 6, of the 8.800 hotels and other accommodation places on the Bulgarian seaside, only 2.500 have accepted tourists, which is less than 28%.

    But this is not the worse news. The total nights spent since the beginning of the season are around 384 thousand for the entire coast.

    By comparison – data from the National Statistical Institute show that last year, which also did not start very strongly, in the months of May and June alone, in Sunny Beach they were three times more tourists – nearly 1.25 million. Golden Sands at the same time last year reported nearly 912.000 overnight stays, according to official statistics.

    It is the two largest resorts that traditionally work with foreigners that are currently feeling the brunt of the impact on tourism.

    From the beginning of the season to July 6 in Golden Sands there were only 51 hotels open, which is 30 per cent of all.

    In Sunny Beach, the picture is even blacker: there are only 137 sites open in the resort, only 16.3% of all.

  • 1.103 accommodation establishments were open in Bulgaria in May 2020

    1.103 accommodation establishments were open in Bulgaria in May 2020

    In May 2020, in a state of emergency and the ensuing epidemic situation, 1.103 accommodation establishments – hotels, motels, camping sites, mountain chalets and other establishments for short-term accommodation with more than 10 bed-places were open in Bulgaria.

    The total number of rooms was 30.5 thousand and the bed-places were 61.1 thousand. In comparison with May 2019, the total number of accommodation establishments (open during the period) decreased by 52.6% and the bed-places in them – by 74.1%.

    The total number of the nights spent in all accommodation establishments registered in May 2020 was 116.1 thousand, or by 92.0% less in comparison with the same month of the previous year.

    The total revenues from nights spent in May 2020 reached 5.4 million BGN or by 92.9% less compared to May 2019.

  • The hotel market could begin recovery this autumn

    The hotel market could begin recovery this autumn

    The hotel industry continues to remain attractive for developers and investors, despite uncertainties in the following period.

    Strongly affected by the coronavirus generated crisis, many hotel operators are counting on reopening during the holiday season to unblock operations and start recovery.

    The market could return to an occupancy rate of 50-60% for hotels operated by recognized brands towards the end of the year, in a scenario in which the epidemiological context remains stable or even starts improving, according to Colliers International consultants.

    In March, Romanian hotels recorded a 68% decline in the number of tourists

    In March, the first official month of pandemic, Romanian hotels recorded a 68% decline in the number of tourists, according to The National Institute of Statistics (INS) data.

    In Bucharest, the occupancy rate was only 15% in March and April, and most hotels closed their doors to economically cope with the significant decrease in turnover.

    The decline is higher compared to other parts of the world, considering that in Europe the number of tourists decreased by only 19% and worldwide the decrease was 57%, according to The World Tourism Organization.

    The average occupancy rate in Bucharest could reach 40-45% at the end of this year and the disposable income of hotels in the Capital could register the same level as before the pandemic, of about 87 euros, in a year or even a year and a half from the time the pandemic was declared.

    Tourists will migrate from small local hotels to hotels operated by renowned brands

    Almost 50% of the total number of rooms in the Capital are operated by international brands or by well-represented local brands and enjoy a much higher degree of trust than locally operated hotels with lower recognition.

    Therefore, it is possible that, as a first trend, there will be a move from local accommodation to hotels operated by well-known brands, even if the price paid will be higher.

    Romania does not have a very high economic risk due to the slowdown in the tourism sector, as tourism represents only 3% of the Gross Domestic Product (GDP), compared to Spain (12%), for example, or Hungary, where this percentage reaches 7%.

    Thus, Colliers International consultants expect tourism to be supported to a greater extent by other economic sectors, which will recover faster, such as the services sector or transport and logistics.

    Developing hotel sites continued their activity

    In fact, funds allocated worldwide for the recovery of the economy will have direct consequences for the return of the hospitality industry.

    At local level, a package of specific measures for this industry has not yet been announced, which makes it difficult to implement a business plan for the reopening of hotels, but measures such as exemption from local taxes or the payment of income tax for a certain period aid for the payment of employees’ salaries or the implementation of security measures could help operators get through this difficult period.

  • Flagship Sheraton and Marriott hotels at Frankfurt Airport

    Flagship Sheraton and Marriott hotels at Frankfurt Airport

    Marriott International has unveiled a new offering at Frankfurt Airport following a long-term commitment to upgrade and elevate the existing Sheraton Frankfurt Airport Hotel & Conference Center.

    The renovation of the property delivers a revamped Sheraton hotel to the market but also a brand-new Marriott hotel, bringing two of Marriott International’s most well-known brands together in one location for the first time.

    Each hotel is distinct and retains individual brand characteristics, including guest rooms, executive lounges and lobby experience, but shares expansive facilities including dining, conference and fitness. 

    Sheraton Frankfurt Airport Hotel & Conference Center divided by Marriott

    Previously occupying three inter-connected buildings with 1,008 rooms, the Sheraton Frankfurt Airport Hotel & Conference Center has been divided to allow for a 779-room Sheraton hotel and a 233-room Marriott hotel.

    Over the past five years, all rooms of the Sheraton hotel have been refurbished and will soon offer a new Sheraton Club Lounge, designed to offer the comfort and connectivity that Sheraton guests are looking for.    

    The Frankfurt Airport Marriott Hotel’s 233 contemporary guest rooms feature hard-wood flooring, comfortable work zones with sofas and flexible tables, and stylish lighting. The hotel also features the brand’s signature M Club, an exclusive 24/7 lounge for relaxing, working and meeting.  

    The final stage of the renovation will commence shortly with the refurbishment of the Sheraton lobby, Sheraton Conference Center, and shared dining facilities, of which there are two restaurants and two bars. T

    he Sheraton Conference Center, offering 57 meeting spaces across 4,148 square metres, has already been updated with a state-of-the-art lighting concept and will enjoy further refurbishments over the next two years.  The property expects to be fully transformed by the end of 2022. 

    Marriott International now offers five properties at Frankfurt Airport including Moxy Frankfurt Airport, Moxy Frankfurt Airport Kelsterbach and Element Frankfurt Airport.