Pan-European Hotels 101
Green Street recently initiated coverage on Swedish company Pandox (PNDX), and also released a new Pan-European Hotels 101 report. Some highlights from the new report are included in this excerpt, as well as insight on hybrid/variable leases, taken from page 17 of the full report.
- The Pan-European Hotel market is larger than the US by room count
- Independent hotels represent the lion’s share of the total stock.
- Strong pricing performance has led RevPAR levels above pre-pandemic levels.
- Demand is mostly driven by EU travellers, China/India to boost mid-term occupancy.
- Leisure travel is going strong, business travel propensity remains subdued.
- Management contracts & franchise structures warrant higher cap rates than leases.
- Hybrid/variable leases offer better returns than fixed leases on a risk-adjusted basis.
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