Turkish investors on hunt for hotels in Europe
Yasemin Salih - ISTANBUL
The post-pandemic financial climate has also paved the way for growth opportunities for investors. According to experts, the recession in Europe has caused investments to change hands, especially in the tourism sector, and Turkish companies are among those looking for hotels in this environment.
According to Çiğdem Türkyılmaz, chairman of Servus International Türkiye, an international tourism investment consulting company, Turkish investors are taking concrete steps in this regard.
Türkyılmaz emphasized that Turkish companies have been aggressive in buying or operating hotels in Europe.
“Tourism brands with strong financial structures have been focusing on city hotels in Europe to diversify their portfolios,” Türkyılmaz said, adding that Europe is currently a market where all global tourism investors, especially those from the U.S., are looking for opportunities.
“Many investors are willing to invest in markets where the returns are more visible so as not to put all their eggs in one basket,” she said.
“We’re seeing that in Europe right now, a lot of tourism investors are looking at Europe. Local investors in Europe have stopped. As soon as they stop, the Americans come into Europe. China was there a while ago with very heavy investment, but the Chinese government is suppressing its investors. The U.S. has found a favorable environment, and giants like Starwood and Blackstone are investing in Europe.”
The opportunity environment Türkyılmaz mentioned has also whetted the appetite of investors who have made a name for themselves in 5-star and luxury hotel management in Türkiye.
“Since November 2022, there has been a lot of interest from Turkish investors. They come to us and ask for advice on how to enter prestigious markets that are difficult to enter, especially in the U.K. They are in the upper segment in Türkiye, but there is a high appetite to buy three- and four-star city hotels in Europe. There are also a lot of European hotels that want to sell or transfer their operations.”
According to Türkyılmaz, there are also investors who want to brand themselves in Europe under their own name and others who want to buy a three-star hotel for investment diversification. She said that since November, 60 Turkish companies have come to them asking for support in the European market, and listed the most preferred countries as England, France, Italy and Portugal.
The Turkish investors are rushing to enter the market before the U.S giants dominate the market, Türkyılmaz noted.
“There are investors in Europe who are tired of the pandemic period, she said. “Some are old investors who do not want to continue. They want to sell their hotels there.”
Türkyılmaz said about 10 Turkish tourism groups will have completed a hotel project in Europe by the end of the year.
“There are big groups among them,” she said.
“Top management, such as general managers, will come from Türkiye. Turkish managers are already known in Europe, they are very strong in tourism.”
