(Vienna, 10.10.2021) The new 3-part Videocast series with Monika Rosen looks at the European hotel real estate markets, the topics of oil prices and inflation as well as the (possible) effects of the climate summit in Glasgow.
In the first part of the 3-part videocast series, Martin Schaffer, Partner at mrp hotels, and Monika Rosen-Philipp, Chief Analyst, UniCredit Bank Austria AG discuss the development of the European real estate and tourism industry.
The Expo Real, which recently took place in Munich, was characterised by the search for projects and opportunities to spend money.
The picture is similar in the European real estate markets. Low interest rates have been shaping the picture for years and have also had a strong influence on the interest-sensitive real estate markets. Many investors are looking for alternatives for their money. Private investors also have a strong tendency towards the real estate market – a phenomenon that has been observed for many years. In an extended form, this circumstance also applies to hotel real estate.
In a survey by Cushman & Wakefield, more than one third of the investors questioned said that they would also like to buy more hotel properties in Europe in the future. The trend and demand thus seem unbroken and unaffected by Covid-19. Holiday hotels and serviced flats are particularly in demand in this context.
Tourism shares in the hotel and airline sectors, which are very strongly listed on the stock exchange, have also seen interesting developments since the beginning of the year.
On the one hand, large American hotel chains are posting significant increases, outperforming the S&P 500 (Hilton: ~35%+ year-to-date; Marriott: ~25%+ year-to-date).
On the other hand, the industry is facing challenges – as can be clearly seen in the example of Lufthansa: The company has almost halved its value since the beginning of the year. This was caused by a heavy debt burden and the repayment of state aid. In addition, Lufthansa is confronted with high demands regarding climate change.
Airlines generally seem to have been hit harder than hotel companies on the stock market since the beginning of the year. The price of paraffin is one of the biggest cost factors for airlines. They are therefore directly dependent on the oil price. The current massive increase in the price of oil therefore has a corresponding negative impact on airlines’ margins. This development additionally complicates the recovery from the Corona crisis.
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Click here for part 2
Click here for part 3