Europe -  Zurich

With some 400,000 inhabitants (December 2017), Zürich is the largest city in Switzerland and is a hub for railways, roads and air traffic. Zürich Airport and Zürich Central Station are the largest and busiest in the country and are easily accessible from the main areas of the city. Zürich is considered a leading global city and among the world’s largest financial centres. The country’s major banks are headquartered in Zürich, which is also home to a number of insurance groups as well as international companies such as Google and renowned research institutions such as the ETH (Swiss Federal Institute of Technology).

Visitation to Zürich has increased year-on-year for the ninth consecutive year, with impressive growth in 2017 and 2018 of 7% and 5%, respectively, driven by both the international and domestic markets. Germany remains the largest international feeder market and one of only two European countries in the top 5 which also includes the USA, the UK, China and India. Overall, international travellers account for approximately 75% of total visitation. The destination is primarily business oriented, although its picturesque Old Town, high-end shopping and location on the lake make the city appealing to the leisure market. The conference market is relatively small, mostly due to the lack of a large convention centre; conferences and meetings are held in hotels or other venues and are therefore generally smaller in size.

Over the last few years, Zürich has welcomed an increasing number of leisure groups who choose the city as their base to explore Switzerland, thus driving occupancy slightly up. However, the strong currency dynamics making the country more expensive for foreigners and continue to put pressure on average rate. Nevertheless, we note that Zürich’s hotel market still achieves one of the highest average rates in Europe.

While hotel supply has remained stable in recent years, the city has a substantial pipeline given its size. Notable projects include two Hyatt Hotels at the airport – a 250-room Hyatt Regency and a 300-room Hyatt Place (both scheduled for 2020) – the 160-room citizenM Zürich (2019) and a 170-room Meininger hostel/hotel hybrid property (2021). Zürich is dominated by family-operated businesses with a relatively illiquid transaction market. We note that the 49-room Widder Hotel and the proposed 260-room InterCity Zürich Airport both transacted in recent months, although for undisclosed prices. Overall, Zürich recorded a 0.6% increase (4.5% in local currency) in hotel values in 2018.

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%

Zurich RevPAR Change (€Euro)

Zurich 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)