Europe -  Zurich, Switzerland

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With some 410,000 inhabitants (December 2019), 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 been increasing year-on-year for the last ten year, with growth in 2018 and 2019 of 5% and 4%, 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.

Owing to its strong reliance on international travellers, Zurich was heavily affected by the COVID-19 pandemic in terms of occupancy level. However, due to less strict lockdown measures in Switzerland, the hotel market benefitted from the domestic demand with a higher spending power, resulting in an ADR remaining to 2019 levels.

While hotel supply has remained stable in recent years, the city has a substantial pipeline given its size. Recently opened hotels include the 40-room La Réserve Eden au Lac and the 255-room Hyatt Regency. Notable projects include a 300-room Hyatt Place at Zurich airport, scheduled for late 2021 – a 170-room Meininger hostel/hotel hybrid property (summer 2021) and the 208-room Ruby Mimi Zurich in late 2021. Zürich is dominated by family-operated businesses with a relatively illiquid transaction market. Overall, Zurich recorded a 12.8% decrease in hotel values as of the end of 2020.

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%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)