Europe's Hotels See Values Fall 01 April 2021 Sharp declines in revenue caused by the pandemic coupled with a more cautious approach to lending has prompted hotel valuations to fall over the past 12 months, although not as steeply as some had initially anticipated. This is the key finding of the annual European Hotel Valuation Index (HVI) compiled by global hotel consultancy HVS, which reports that in the year of the COVID-19 outbreak hotel values saw average declines of between 5% and 15% compared with the previous year. Last year followed a decade of hotel value rises across Europe, with 2019 posting an average 3% increase – with some properties in Southern Europe experiencing 7% rises. However, widespread lockdowns in 2020 which resulted in the majority of Europe’s hotel’s closing for business, saw annual RevPAR fall by around 70% compared to that of 2019.