Outlook

The hotel market remains strong

We are now in the midst of the seasonally strongest period of the year. Booking activity remains stable, event calendars are well filled across many of our markets, and demand for both business and leisure travel continues to be robust. The conflict in the Middle East has so far had a limited impact on travel activity in Europe.

Europe continues to be one of the world’s most attractive regions to travel to and within. During the second quarter, international arrivals to Europe increased, supported by growing intra-regional travel as more Europeans chose to holiday and travel within the region. At the same time, we continue to see stable demand from the US, contributing to a broad and resilient demand picture.

The development confirms the structural strengths of the European hotel market. Limited supply growth, increasing travel demand and Europe’s strong position as a destination create favourable conditions for growth. A growing hotel market, the acquisition of Dalata and organic growth in the comparable portfolio provide a solid foundation for continued growth in cash earnings in the short term and continued value creation over the long term.