The UK has retained its position as the most-sought after destination in Europe for hotel real estate investment in 2018 according to CBRE\u2019s European Hotel Investor Intentions Survey. \r\n\r\nThe UK, Germany and Spain are the three most attractive hotel investment destinations in Europe, with more than two-thirds (69%) of investors identifying these markets as the preferred countries for hotel investment in 2018.\r\n\r\nThe study by the commercial real estate services and investment firm found 35% of respondents selected the UK as their target market for hotel investment, an increase of 106% compared with 2017.\r\n\r\nThe UK\u2019s number one spot was reinforced by a record year for hotel investment which saw the UK register \u20ac6.2bn (\u00a35.3bn), a 39% increase year-on-year, and the highest hotel investment volume of all the European countries in 2017.\r\n\r\nGermany was identified as the second most attractive market favoured by 18% of respondents. Spain was ranked third by 16% of respondents and saw the highest year-on-year growth in investment volumes on a country-level in 2017. France was fourth with 8% of respondents and Ireland jumped to fifth place, alongside Italy with 6%. \r\n\r\nPaul Collins, head of hotel Investment properties for UK & Ireland, said: \u201cThe UK is attracting a wide range of international investors seeking opportunities in key cities such as London, Manchester and Edinburgh.\r\n\r\n\u201cInvestor appetite for quality regional hotels will remain resilient and despite the UK\u2019s impending withdrawal from the European Union, our survey results suggest that any restrictions to the growth of UK investment volumes are more likely to be because of restricted supply rather than a reduction in demand for hotel assets.\u201d\r\n\r\nThe survey also found 94% of respondents cited they are planning to invest either the same or more capital into hotel real estate in 2018 compared to 2017, said to highlight the growing attractiveness of hotels amongst an increasingly diverse investor base.\r\n\r\nThe annual report, now in its second year, also found that 38% of respondents are targeting predominantly gateway cities with capital cities falling slightly behind with 36%, secondary cities ranked third with 16%, followed by resort locations with 9%. \r\n\r\nThis is said to be attributed to the shortage of investible stock in major European capital cities, and the low yield environment across prime cities, which is prompting investors to look further afield.