In the 2022 edition of Meet the experts: Southern Europe Hotels Event, our specialists analyse the performance and investment perspectives for year-end and forecasts for 2023. The panorama presents a promising outlook based on strong fundamentals, featuring growing penetration of international brands and increasing institutionalized property structures.

The recovery has outpaced most forecasts. RevPAR is growing to surpass 2019 levels, underpinned by strengthening ADRs and a progressive rise in occupancy. Demand is strong, reinforcing the ongoing trend towards experience, quality, and security, benefiting renewed product proposals. We have not seen demand significantly impacted by the current economic environment; however, we will continue to see increased pressure on margins and profitability, which we expect to be the key challenge to the industry in 2023.

Investment sentiment continues strong for hospitality, especially for leisure (both coastal and city destinations) although macro-economic circumstances have impacted investment volumes during the last part of 2022. For those looking to take advantage of the slow-down in investment, we believe there may be a select number of opportunities in the short term, however the window will be limited, and we currently forecast investment to pick up again, with the market growing in the second half of 2023.

Meet the experts: Southern Europe Hotels Event: Juan Garnica, Executive Director, Head of Hotels Southern Europe. Savills Spain; Javier Oroz, Capital Markets Director, Savills Hotels EMEA; Guillemette Briard, Capital Markets Associate, Savills Hotels EMEA; Brynn Evans, Capital Markets Director. Savills Spain and Nele Magi, Senior Account Manager, STR and Robert Stapleton, Capital Markets Director, Savills Hotels UK at our latest edition, focussed on the Southern European Hotel Market organized at Savills’ headquarters in London.