Europe -  Geneva

Geneva is the second most populous city in Switzerland (after Zürich) with a total population of around 200,000 inhabitants (2016). The destination is widely regarded as a global city, mainly on account of the presence of numerous international organisations, including the headquarters of many UN agencies (ITC, WHO, UNHRC). The economy is focused on the service sector with a large number of financial institutions, private banks in particular. The city is also considered to be a hub for the watch-making industry with numerous luxury brands headquartered there and is home to major international research and development laboratories.

While Geneva benefits from a relatively stable business demand throughout the week, the hotel market continues to suffer (although 2017 was slightly better) from its inability to capture the leisure segment during weekends and public holidays, which explains the historical marketwide average occupancy of around 64-65%. Although average rate has decreased significantly over the last decade as a result of the appreciation of the Swiss franc against the euro making the country more expensive for foreign players, Geneva’s hotel market still achieves one of the highest average rates in Europe. The decision to lift the cap of the Swiss franc to the euro in January 2015 has put more pressure on hoteliers who were forced to decrease prices.

Hotel supply has remained relatively stable in recent years, with minor variations related to the reorganisation of some hotels’ inventories and renovation works. At the end of 2017, the Canton of Geneva counted 120 hotels providing some 9,366 rooms, with some 87 hotels and 6,141 rooms located in the city of Geneva, which is quite substantial given its small size. The market is geared towards the upper-end of the spectrum with four- and five-star hotels accounting for more than 55% of the total room inventory.

The majority of the recently opened properties, which includes four ibis properties (one ibis, one ibis Budget and two ibis Styles), and new supply, will complement the somewhat limited budget offer and bring new economy lifestyle concepts to the city with brands such as Citizen M, Meininger and Yotel scheduled to enter the market in the next 24 months. At the luxury end of the sector, opportunities have arisen for new brands following the recent deflagging of the Hotel Metropole and the Richemond as well as the development of a 26-room property rumoured to be operated by the Aman Group. In addition, we note the 250-room Radisson Blu which will be strategically located between the city centre and the airport. In terms of transactions, Geneva’s hotel market is rather illiquid, mostly due to a lack of sellers, with very few sales taking place in recent years.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Geneva RevPAR Change (€Euro)

Geneva RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Simon Hulten
[email protected]
  • +44 020 7878-7775 (w)