Hotel occupancy reaches 89% recovery rate since Covid

European hotels welcomed almost 70% of the world’s travellers, with hotel occupancy reaching an 89% recovery rate relative to 2019 levels, according to JLL Hotels and Hospitality’s latest ‘Global Hotels Investment Outlook’.  

The outlook’s results come despite the impact of insufficient flight capacity and labour shortages on international travel’s recovery, as Mediterranean resorts led in the recovery, with some of the most popular tourist resort spots in the world being in Spain, Italy, Portugal, and Greece. 

Meanwhile, pent-up demand after the lifting of travel restrictions during summer 2022 meant that “favourable” exchange rates relative to the Euro drove faster recovery in these destinations. 

An estimated 700 million tourists travelled during the first three quarters of 2022, an increase of 133% compared to the same period in 2021. As travel restrictions continue to ease and international borders reopen, JLL expects to see a continued increase in travel demand. 

According to the report, Europe is already gaining $6.85bn (£5.69bn) in capital market inflows in 2022, while Asian and Middle Eastern investors will focus on gateway markets in Europe, such as London and Paris.

JLL’s Hotels and Hospitality group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling $83bn (£68bn) worldwide. The group’s 350-person global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. 

Will Duffey, head of EMEA hotels and hospitality capital markets at JLL, said: “Despite the macroeconomic downturn that characterised much of 2022, the European lodging industry has remained resilient. 

“Looking ahead to 2023, capital market dislocation and rising debt costs will likely be a concern for investors, however those that remain nimble will be poised to acquire quality assets and grow their portfolios.”