The hotel industry is facing several challenges that are having a direct impact on the hotel real estate market.
1.Rising costs and margins under pressure
Costs, particularly labour and energy costs, have risen significantly — by between 15% and 18% — putting pressure on operators’ profit margins. Although demand is strong, these additional costs could impact profitability in the short term.
2.High interest rates and difficult financing
The hotel market is in a challenging position due to high interest rates, which make financing new projects difficult. Ongoing inflation is also weighing on the entire sector, leading to a reduction in real estate transactions, with purchases and sales reaching historic lows.
3.Fluctuating demand: Business and tourism
Demand for business travel is rebounding strongly and exceeding initial forecasts, as is demand for seminars and small conferences. However, economic fluctuations are making long-term planning more uncertain. To avoid risks, operators must adjust their strategies in line with economic forecasts.
