Economic reasons why Room to Invest have chosen Slovenia
- There is a shortage of hotels in the area and we expect this to propel returns and help investors to capitalise from expected increases in the region's popularity
- Slovenia itself has generated considerable interest from an investment perspective, and the UK was a notable supporter of Slovenia's accession to EU membership
- Tourism is expected to drive up hotel room occupancy and hotel valuations significantly
- According to the World Travel and Tourism Council, the contribution of travel and tourism is expected to grow from 11.4% of Slovenia's GDP in 2009 to 13.2% by 2018.
- Slovenia's GDP growth in 2008 was a robust 4.2% according to Eurostat forecasts and remained in positive territory during the global recession in 2009
- Search for attractive yields is proving extremely difficult in a lacklustre UK property market, with no end to the weakness forecast in the short term
- At Room to Invest we believe Slovenian property prices are set to continue to generate robust gains
- Operating margins in Slovenia are particularly attractive when compared with the UK, which can make hotel operation lucrative
Our analysis of the economic backdrop in Slovenia is supported by:
- Expectations of capital values
Rising capital values are expected to be supported by increasing levels of tourism and business investment.
- Value relative to developed European markets
- Location and transport links
Low cost airlines provide easy access by air coupled with excellent train transport services around Slovenia.
- Economy and infrastructure
- Investment potential
We think that when compared with developed European economies such as Spain, the relatively low capital values of the Slovenian property market can offer significant and highly attractive yields.
- Above average room occupancy
Gora Hotel should enjoy above average room occupancy.