ONCE AGAIN A SUBDUED START TO THE YEAR
The current mix of sticky inflation, sluggish economic development and potentially further interest rate hikes have also left their mark on the hotel investment market. After investment activity in the hotel market briefly picked up in Q4 2022, the pace has slowed in the first quarter of 2023. With a registered transaction volume of €272 million, this figure marks the weakest start to the year since 2010, when the markets were still clearly affected by the consequences of the global financial crisis. The previous year's figure was missed by around 38% and the 10-year average by 58%. Especially the lack of portfolio transactions is responsible for this. Furthermore, investors are acting very selectively in the current situation. This is perceptively expressed in the risk appetite, as mainly core and core-plus transactions have been recorded so far.