Europe -  Geneva

Geneva is the second most populous city in Switzerland (after Zürich) with a total population of around 200,000 (2017). 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 relatively stable business demand throughout the week, the hotel market suffers from its inability to capture the leisure segment during weekends and holidays, which explains the historical marketwide average occupancy in the mid-60s. Nevertheless, the market has witnessed a slight increase in volume over the last two years, as the total number of arrivals to the city increased by 5% in 2017 and another 3% in 2018, coupled with minimal increases in supply.

Although average rate continues to decrease as a result of the currency dynamics making the country more expensive for foreigners, Geneva’s hotel market still achieves one of the highest average rates in Europe. The decision to lift the peg on the Swiss franc to the euro in January 2015 has put more pressure on hoteliers who were forced to decrease prices.

Hotel supply for the city and Canton of Geneva has remained stable in recent years, with minor variations related to the reorganisation of some hotel’s inventories and renovation works. At the end of 2018, the city of Geneva had 85 hotels providing some 6,400 rooms, which is quite substantial given the small size of the city. 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.

Over the next three years, the city is expected to welcome new economy lifestyle concepts with brands such as citizenM, Meininger and Yotel scheduled to enter the market. In addition, we note the 250-room Radisson Blu which will be strategically located between the city centre and the airport. At the luxury end of the sector, the Hotel Metropole and the Richemond have not yet been re-flagged, although interest among hotel operators continues to be strong. 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. Overall, Geneva recorded a 3.5% decrease in hotel values in 2018 (although a 0.3% increase in local currency).

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)
Magali Castells
[email protected]
  • +44 20 7878-7710 (w)
  • +44 7 850205149 (m)