Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON- Madrid; Barcelona; Brussels; Dusseldorf; Frankfurt; Budapest; Cologne and Warsaw are all at risk of an oversupply of hotel space, according to a new survey from Jones Lang LaSalle Hotels. All seven cities are seeing a surge in new development at a time when occupancy levels are falling.

On a conservative estimate, €4.7 billion ($5.3 billion) will be invested in new hotel construction in Europe during the three years to 2005, more than the current market capitalisation of the InterContinental Hotels Group. The report questions whetner the market can support all this new supply.

 Mark Wynne Smith, Managing Director of Jones Lang LaSalle Hotels said: “The constant desire of hotel operating chains to increase market penetration, an expanding pool of capital seeking a more diversified property investment portfolio, and the lack of available (or suitable) product, has led to a marked increase in new development across many European markets, the extent of which has surprised us.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.