European hotel real estate investment volumes reached €23bn (£19.6bn) in the year to the end of Q1 2019, according to the latest research from global real estate advisor CBRE.
European hotel investment activity in the first quarter of 2019 was driven by continued growth, particularly in the UK, Spain and Germany. UK hotel investment volumes accounted for 35.5% of capital deployed in the country in the 12 months to Q1 2019, reaching €8.2bn (£7bn) and reflecting a 15.1% year-on-year increase. This growth was largely a result of a particularly strong start to 2019, with Q1 up 24.5% on Q1 2018.
According to the firm, Spain remains Europe’s second largest hotel investment market since Q3 218. Deals amounted to €4.2bn (£3.5bn) in the 12-months to Q1 2019, up 17.5% on the previous year. Germany experienced modest growth in hotel deal volumes. Over the last 12-months, investment reached €3.9bn (£3.3m), up 7.1% on the preceding 12 months and representing 17.0% of total European hotel investment.
Paul Collins, head of hotel investment properties UK and Ireland CBRE, said: “Following a record year for hotel investment, 2019 is off to a strong start. Growth, in key European markets such as the UK and Spain, is a testament to the strength of the hotel sector and demonstrates continued demand for alternative investments and operational real estate.
“A significant amount of investment has come from Israeli and Asian capital which is a trend that we have seen over the past 12 months and one we anticipate to continue.”