European hotel investment reaches €21bn in Q2 2018
Hotel real estate investment in Europe reached €21bn (£18bn) in the 12 months to Q2 2018, representing a 5.8% increase in transaction volumes year-on-year.
According to the latest data from global real estate advisor CBRE, total investment volumes of all real estate sectors in Europe saw an increase of 4% on the same period last year, driven by “robust growth and continued investor demand”.
UK hotel investment volumes accounted for €8.2bn (£7.3bn), reflecting a 95.1% increase year-on-year, and a notable recent deal included the Project Ribbon pan-UK portfolio of mainly Holiday Inn hotels, which sold for £742m in May.
Germany was Europe’s second largest hotel investment market in the first half of 2018, with investment volume increasing by 5.8% year-on-year, reflecting an increase in market liquidity.
Olivia Kaussen, CBRE Germany, said: “Germany continues to be a key country market for hotel investment, attracting an increasing amount of foreign capital. In the first half of 2018 German hotel transaction volumes reached €1.9bn (£1.6bn) and this was attributed to a number of large single asset transactions.”
Colin Low, CBRE Hotels added: “The general growth in discretionary consumer spend and the heightening demand for experiential travel make for positive European hotel sector fundamentals.
“Consequently, we are seeing robust demand from investors looking to capitalise on these trends. The hotel sector offers investor income options ranging from fixed to fully-variable; consequently, the capital being deployed into the sector is diverse, spanning core to opportunistic.”
