How much longer can global hotels outperform?

Hotels have seen a considerable turnaround in the past five years given the near-existential threat that the pandemic posed to the sector. Having bottomed last year, we expect values will grow in the coming years, with a pick-up in consumer spending growth supporting demand in Europe. However, with business travel structurally lower post-pandemic and new supply set to ramp up in both Europe and the US, we think further RevPAR gains will be fairly subdued and that the sector’s recent outperformance will end.