China and USA investments’ in Europe: new scenarios

According to an annual survey on 100 senior hospitality industry leaders realised by Deloitte LLP, Chinese and North American investors are expected to dominate the European hotel investment market in 2017.

In fact, 62% of respondents sees China as the biggest source of investments into Europe, rising from 51% last year and followed by North America with 46%. Compared to 2015, the deal flow has been weaker in 2016, but hotel executives are optimistic about the investment opportunities: 34% believe that the European investment cycle is 12-18 months way from peaking. 

According to hotel investors, the main concerns about 2017 are the geopolitical instability in Europe followed by deflation, economic growth, and Brexit. By consequence, one third of respondents considered the budget segment one of the most promising.

Investors from China and North America look at Europe as an offering potential. Amsterdam is in the top spots of the most attractive hotel investments in Europe with 34% of preferences: in other words, the Netherlands have substituted the UK, while London keeps its standing as an attractive destination both for business and leisure purposes.

At Twissen we observed that Chinese investors are very active both in homeland and abroad. China seems to be leading a phase of consolidation in Travel & Tourism in Asia (and not only), following to big M&A deals. Abroad there are several initiatives that shows the interest of Chinese investors on growing destinations, such as Peru, Pakistan, Oman, and on US real estate.