UEFA Euro 2020’s impact on hotel inventory
There's nothing quite like an international football tournament and the wave of excitement that takes over cities as fans flock to the stadia of the host nations. During UEFA Euro 2020, that party atmosphere will for the first time extend to 12 different host markets. And for the smaller host markets, this means a significant influx of visitors and a subsequent impact on hotel supply and demand.
With less than a year until Euro 2020 kicks off, we take a look at new hotel openings in Baku, Bilbao, Bucharest and Copenhagen as well as how future demand is shaping up in Dublin.
To add context to what we cover in this blog, between 1 January 2014 and the start of UEFA Euro 2016 in France, host markets Bordeaux and Toulouse each added in excess of 330 rooms, while Lyon exceeded the 250 mark.
Baku – 2020 won't be Baku's first taste of hosting top-tier football (2019 UEFA Europa League Final). However, hosting three group matches and a quarter-final during Euro 2020 will mean a much greater influx of visitors. And those visitors will likely need somewhere to stay. Between now and the tournament, Baku will welcome almost 500 new rooms in two new hotels—an 8% increase on existing inventory in the market.
Interestingly, no new rooms were added between 2018 and the UEFA Europa League Final in June of this year.
Bilbao – Perhaps the most significant indicator of a major football tournament’s pulling power, Bilbao has welcomed its first new rooms since 2011 in preparation for Euro 2020. Between 2018 and the first kick of the opening game, the market will have welcomed 293 additional rooms, which will represent a 6% increase on its pre-2018 supply.
Bucharest – Unlike its Spanish host counterpart, Bucharest has seen consistent inventory growth in recent years. Regardless, the Romanian capital is set for a considerable increase in inventory ahead of the tournament. Between July 2019 and June 2020, 860 new rooms will enter the market, ensuring those who come in search of Group C and round of 16 glory have plenty of accommodation options.
The addition of the three Ibis Hotels in the Midscale Class and three projects in the Upscale and Upper Upscale classes shows the diverse nature of this market.
Copenhagen – Regardless of how many tickets are sold for the games at Copenhagen’s Parken Stadium, the Danish hotel market is already a winner in supply growth. The market’s inventory growth of 3,946 rooms between 2018 and the tournament’s opening match will represent a 20% increase on existing supply—second only to a 21% lift in Glasgow.
Future demand in Dublin
Ever wondered how mega events like Euro 2020 affect future hotel demand and bookings? After all, the early bird catches the worm, right? And what if your team is drawn in a glamourous group or makes it to the knockout stages, with a rapidly-growing clamour for tickets and hotels? The tournament is just under a year away and the percentage of rooms sold in Dublin currently sits at below 25% for the three group fixtures on the 15th, 19th and 24th of June 2020.