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European Hospitality Sector

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Submitted By ramanibrijesh
Words 18551
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Room to grow European cities hotel forecast for 2014 and 2015.
18 gateway cities, Amsterdam to Zurich
March 2014

www.pwc.com/hospitality

II

Room to grow

Contents
Summary

2

How did 2013 turn out?

4

Spotlight on prospects for 2014 and 2015

6

Beyond the data: trends transforming hotel businesses

14

Economic, travel and supply outlook

20

From Amsterdam to Zurich:
Which cities are best placed to grow?

25

Appendices: Full data tables

49

Further reading

52

Contacts 53

Summary
This third edition of our European cities hotel forecast is published against a backdrop of a region that has taken an economic pounding but is seeing clear evidence of economic recovery and returning confidence

The world is changing at a pace and in this snapshot (taken in February 2014) we look forward to a resurgence in travel and hotel prospects in 2014 and 2015.

2

Room to grow

(c)Suzanne Christ

In terms of where hotels are compared to before the recession, in nominal terms the market is almost back at its pre-recession peak (reached during 2007) but it remains significantly behind in real terms. For example, European ADR is now only 5.7% below its pre-recession levels in nominal terms but 17.9% lower in real terms.
There are 18 cities in this econometric forecast
– all are important gateway cities and/or business and tourism centres and some are en route to becoming mega cities. The 18 reflect the challenges facing other cities in Europe where position on the economic and hotel cycle is crucial, and some cities are clearly better placed to grow than others.

Room for change and room for growth
Europe is the world’s largest tourism destination with over 560 million international tourist arrivals in 2013.
The cities in this survey represent over
680,000 hotel rooms and are

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