How is the market for hotel properties developing? What are the trends in the global hotel industry? Europe's largest trade fair for hotel properties and investment players from the hotel and real estate industry meet to discuss current developments and establish important contacts.
The wide variety of players and topics from the market for hotel properties makes EXPO REAL the ideal platform
The hotel industry throughout Europe is going into a balancing act. Demand this summer is even better than in 2023, and at the same time the industry has finally been able to push through significantly higher prices: The desire for vacations is uninhibitedly great. Vacationers in Germany pay on average 12% higher prices, in leading hotels in the mountains or at the sea even 20-30% more than before. The more luxurious, the easier the money flows: ultra-luxury is making the running.
The city hotel industry has meanwhile caught up strongly again after a longer run-up. In the tourism sector, budget lifestyle hotels for travelers on a smaller budget are the main beneficiaries. And business travel is finally picking up again, again more strongly than expected, as are seminars and smaller conferences. All good!?
Greater sustainability, quality and flexibility—many hotels have already been implementing environmentally friendly measures for years. Reaching today's climate targets will require professional operators and responsible investors with a long-term focus to come together. It is the only way to finance quality products with flexible use in the hotel property market. And to prevail in a still highly competitive market, whose trends consumers/travelers have a massive say in. What solutions are available and how can change be accelerated? Does it unlock new options for investment in hotel properties? At EXPO REAL, you were able to benefit from the know-how of experienced practitioners and hospitality consultants.
The crisis is affecting all asset classes in the core European market of Germany. At the end of the year, financial experts expect a market shakeout, rising insolvencies and high markdowns. Thanks to sustained demand, the hotel industry still enjoys a good image in current comparison with other asset classes, but is just as much in the expansion trap as the latter due to the difficult financing situation.
Hotel operators with strong financial partners behind them are seeking growth through acquisitions of smaller groups or increasing their pace through conversions. Since it has been known that the latter provide for a better CO2 footprint than new buildings, more and more are rushing into this segment. And so, of all things, the regulated framework of the EU taxonomy gives reason for hope: the voices of investors willing to renovate older houses with investment backlogs in an ESG-compliant way are getting louder. They see their big return opportunity again from 2030 onwards, when financing will be aligned with demonstrable emissions or climate targets and will penalize the inactive until then.
All in all, however, it will be very difficult for the hospitality industry this year to plan reliably, even in the medium term.
Behind the scenes, the hosts are no longer beaming. Multiple cost increases - mainly in personnel and energy - range between 15% and 18%, absorbing super rates and eating into corporate profits. Margins are under massive pressure. High and possibly even higher interest rates, as well as still-high inflation, are keeping a stranglehold on hotel operators and the entire economy. A turnaround was not yet in sight, at least in the summer.
And this also affects the hotel operators' closest partners: real estate developers, investors and financial institutions. At best, cash-rich family offices are still investing or other, non-regulated capital is being driven; institutional funds are withdrawing, developers and potential buyers can no longer seriously calculate projects. Hotel real estate transactions have fallen to a historic low.How long can the hotel industry sustain this balancing act?
From buying and selling hotels, investing in hotel properties, trends and prices to current hospitality topics—EXPO REAL is well worth a visit!
Which companies are offering services in the hotel property sector? And who does what? You could find out more about this directly from the exhibitors at EXPO REAL 2024. In addition to the joint pavilions “World of Hospitality” and “196+ lounge”, there are many individual contributions from leading players in the market.
Since 2011, the joint pavilion “World of Hospitality” has been one of the first destinations for trade fair visitors interested in hotel properties: it features domestic and foreign exhibitors from the entire value chain, from investors to hotel operators. This is where you will find contacts across the entire spectrum of the hotel property market: search for locations, hotel buildings, hotel development, prices and financing, investment in hotel properties and operation of hotels.
The "World of Hospitality" was once again occupied with two stands at EXPO REAL 2024. The following companies from the hotel property market and the hospitality sector were respresented
Current topics, effective networking: PKF hospitality group, the parent company of 196+ Events, stands as an internationally recognized leader in hotel, serviced living, tourism and leisure consulting. Being a joint pavilion, the 196+ lounge brings together the leading hotel groups and players in the hospitality industry. Thus, EXPO REAL offers you a varied platform for relaxed networking in the market for hotel properties.
The following companies were among the well-known exhibitors at the 196+ lounge, stand A1.340, in 2024:
The Hospitality Industry Dialogue at EXPO REAL 2024 covered a wide range of topics in the hospitality property industry:
A visit to EXPO REAL is most definitely worthwhile, as this is where the key players in the entire life cycle and all aspects of hotel properties meet. The perfect opportunity to learn first-hand about the trends that are shaping the international hotel property market. You will benefit from the extensive know-how of reputable companies from the hospitality industry and can establish useful business contacts.