European cities hotel forecast 2018 and 2019
European cities saw unprecedented hotel performance in 2017. Almost all the cities in our latest forecast are expected to see further growth in 2018 and 2019.
Hospitality and leisure companies must meet the challenges of consumer trends, economic conditions, technology and competition. PwC’s global team stands ready to help.
The hospitality sector is highly sensitive to economic and competitive market conditions, and is personnel, management, marketing, capital, energy, maintenance, and technology intensive.
Demand and consumer expectations have continued to expand, owing to the evolution of a global marketplace, as well as the increased development of a population desiring additional conveniences, ideally offered with a personalised approach. The online presence of hospitality and leisure establishments today means that consumers have the additional flexibility of making online reservations after comparing specifications and client reviews. The industry can only meet the challenges of today’s world market by understanding and establishing strategy to address consumer trends and demands, economic conditions, technology, competition, and the public’s concerns for safety and the environment.
As at December 2015, the Maltese hospitality industry employed circa 21,000 people (full-time and part-time employees), equivalent to 9.2% of the gainfully occupied population. Circa 57% of these individuals are employed within the food and beverage sector, with the remaining 43% employed within the accommodation sector.
Tourism is the leading services activity in terms of employment within the hospitality industry, whilst also being a key foreign currency earner. Total tourism expenditure in 2015 amounted to circa €1.6 billion (equivalent to 19% of GDP), with tourist expenditure per capita averaging at €918.
PwC provides advice and know-how to the hospitality sector owners, management, franchisors, lenders, investors, creditors, business organisations, government entities, local authorities, and product and service providers. Our professionals fully understand the underlying dynamics of the market and are able to provide various services to clients engaged in the hospitality sector, including:
Our professionals offer transaction, performance improvement and other strategy and business planning services to focus the direction and resources of our clients.
Our approach, whether for single asset purchases or a portfolio, is to study the market conditions, competitive positioning and threats, repositioning potential, and reporting integrity and value.
Our professionals perform valuations and appraisals for single assets to large-scale, full-service resort and luxury properties, to entire portfolios of assets. We are able to guide our clients in strategising or enacting physical and operational improvements that can enhance entity values.
By examining performance with both comparable and standard costs, our operational specialists can identify areas for improvement in revenue enhancements and cost reductions, and develop and jointly implement actionable recommendations.