Complete European resort transaction quantity fell by 69 per cent within the 12 months of the pandemic following a document excessive the earlier 12 months when €27 billion-worth of resort offers have been struck.
Based on the annual European Resort Transactions 2020, printed this week by HVS and its brokerage and funding providers division HVS Hodges Ward Elliott, resort transaction quantity reached €8.5 billion final 12 months.
Single-asset transactions accounted for 65 per cent of all offers, totalling €5.5 billion, whereas portfolio offers represented 35 per cent at €3 billion.
Earlier than the pandemic, 2020 was set for document transaction ranges.
The 12 months began strongly with transactions in January and February up 2.5 per cent on 2019 with volumes of €2.7 billion and a 1.8 per cent rise within the common sale costs per room to €170,000.
Subsequent lockdowns throughout Europe coupled with restricted availability of debt financing pushed transaction ranges down by 66 per cent with just one kind of purchaser, high-net-worth people, investing in bigger volumes of motels than within the earlier 12 months.
A complete of 201 European motels and greater than 44,000 rooms exchanged homeowners in 2020.
The UK retained its place on the high of the transaction desk, posting the very best stage of funding quantity throughout Europe with a complete of €2.1 billion (£1.8 billion).
Some €1.6 billion-worth (£1.4 billion) of UK transactions have been London-based.
Germany maintained second place within the transaction rankings, with complete resort funding quantity for the 12 months reaching €1.7 billion.
Munich was its most favoured metropolis with €501 million-worth of transactions.
Trying forward, HVS expects that the second half of 2021 will start to indicate indicators of transaction quantity restoration as financial assist programmes fall away and loans come up for refinancing, however the bulk of the restoration is more likely to occur in 2022 in parallel with rising resort income streams.
“The total impression of the pandemic is anticipated to have an effect on the transaction market later this 12 months with a rise in distressed debt and opportunistic funding forward of a gradual market restoration.
“Nonetheless, the vast majority of quantity restoration is anticipated in 2022 as immunisation programmes are accomplished and the leisure and company journey sectors begin to get better,” commented report creator Shaffer Patrick, affiliate, HVS Hodges Ward Elliott, London.
Check out the total report right here.