DEVELOPMENT AND BEYOND
Hotel transaction volume in Europe reached record levels in 2015, more than Euro 28,4. billion in comparison to amount of Euro 16,5 billion of transactions in 2014. Yet, Central and Eastern Europe transactions accounted for only 6% of total European transactions while Adriatic region accounted for only 0,9%.
The investor profile within Adriatic region defers greatly within each country: in Croatia only 26% of transactions come from cross-global investors, while in Montenegro the percentage raises to 83% and in Slovenia all the investments are made from international investors (100%).
Globally, money is not an issue. As example, Asian investors are attracted by the higher property yields and safe investment environments abroad, such as those in North America, Europe and Australia. This trend has resulted in Asian cross-border hotel transactions reaching US $11.0 billion by the end of November, a 24.0% increase from the same period last year. According to a statement from the China Insurance Regulatory Commission in 2015, capital invested in overseas markets accounted for just 1.4% of the total assets in China’s insurance industry. Asset acquisitions remain the primary hotel investment vehicle for Asian investors.
So, what is the reason of such a low interest for hotel investments in South-Europe? And what is the investment and management model applicable in this part of the world? What differs from developed destinations and what is to be done? Who and when should develop the infrastructure and how the destinations should position themselves? And the most important question of today; is this really the safe part of the world and how can we assure it?