Total European hotel investment volumes increased by 33% year-on-year, for the third quarter (Q3) of 2017.
This contributed to a 16% year-on-year increase on the year-to-date, with hotel transaction volumes exceeding €14bn (£11bn), according to the latest data from global real estate advisor, CBRE.
The UK and Germany proved to be the largest markets in the first three quarters of 2017, accounting for 55% of the transaction volume. Deal volumes in both the UK and Spain – the third largest hotel investment market – are already ahead of their respective full-year 2016 volumes.
The UK recorded the highest investment transaction levels, which saw volumes reach €2.6bn (£2.3bn) in Q3 2017, up by 195% on the same period last year.
The growth was largely driven by various high-profile hotel portfolio sale in London and the regions, including the sale of the 1,059-room Hilton London Metropole and the long-leasehold interest of the 790-room Hilton Birmingham Metropole, to Henderson Park for £500m.
Paul Collins, head of hotel investment properties, UK & Ireland, at CBRE, said: “The UK hotel market has seen strong growth which has been supported by favourable exchange rates. Buyers have comprised of UK and international parties, which have included existing players and new entrants to the market.”