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Investors still wary of European hotel market in the short-term
Investor confidence towards the European hotel sector has weakened, according to Jones Lang LaSalle Hotels, but only in the short-term.
The survey targeting 'the world's 1,800 investors and owners of hotel/resort properties,' says only short-term performance is likely to suffer; the medium term outlook for Europe's hotel market is strong, with London in prime position.
'Investors do have faith in the sector and believe the majority of markets will stage a recovery over the medium term, with London leading the way,' said Arthur de Haast, managing director.
London will still suffer badly in the short term, confirms the survey, especially as regards occupancy rates, having borne much of the down turn in US travel - acting as a gateway for US visitors, not only to the UK, but also to Continental Europe.
Other short-term casualties are likely to include Edinburgh, Budapest, Birmingham, Prague, Warsaw, Brussels and Berlin. In contrast Milan and Rome are assessed as 'high on the shopping list for investors', joining Barcelona, Madrid and Lisbon listed as key cities ripe for development.
Jones Lang La Salle says the medium term outlook is more positive. Only two markets are expected to remain in negative territory - Warsaw and Budapest, both cities facing a situation of oversupply.
Globally, Asia Pacific is considered to be the least affected region in the short term, due to its geographic isolation and strength of certain economies.