...Occupancy and Pricing Trend Positive: Strong and stable occupancy has allowed major EMEA hotel groups to raise average room rates (ARRs) well above underlying inflation in 2015, resulting in improved EBITDA and EBITDA margins during the year. However, Fitch Ratings expects 2016 to be tougher, with only moderate price rises as some European countries implement further austerity measures and structural reforms which could limit increased consumer spending. This may partly be offset by increased foreign custom from a weak euro. Asset-Light, EMEA Style: EMEA hotel groups have embraced the asset-light concept now prevalent throughout North America, but Fitch expects these to maintain a more diversified approach to ownership and operations. We believe European hotels will continue to hold material owned hotel portfolios as these give some financial flexibility and liquidity through unencumbered asset availability in case of need. For bondholders asset-light structures limit downside risks as...
