Transactions in the European hotel sector have seen an increase in\u00a0volume reaching \u20ac12bn (\u00a38.9bn), 58% up on the in the year to date.\r\n\r\nThe figures were revealed by Charles Human, managing director of HVS at the Hotel Investment Conference Europe at London'\u0092s Jumeirah Carlton Tower.\r\n\r\nIntroducing a session on private equity, Human painted a positive outlook of today'\u0092s hotel investment sector, highlighting\u00a0there had been a 58% year-on-year volume increase.\r\n\r\nThe UK, he said, had seen the biggest number of deals, with \u20ac6.8bn-worth, representing 55% of total European volume. Some \u20ac5.2bn had been portfolio deals, with well over \u20ac1bn still pending.\r\n\r\nSpain was the second-best performing country, with hotel investment growing 93% year-on-year, totalling \u20ac1.1bn, around 9% of total European volume.\r\n\r\n\u0093The market is stronger than it was a year ago with the upturn driven largely by continued recovery combined with increased liquidity,\u0094 said Human. \u0093"\r\n\r\nWe are now seeing much more interest from investors in the hotel sector and we expect this to continue. "Since the start of 2014, around 20% of total group-owned or managed UK hotel stock has changed hands. That could rise to nearly 30% by the end of the year,\u0094" he said.\r\n\r\n\u0093The all-Europe average hotel cap rate stood at 6.1% last year and has decreased to 5.9% this year, indicating continued yield compression, while PE funds accounted for 25% of all European purchases in 2014. The ratio is up to 35% this year \u0096 the most active investor category and predominantly driven out of the US.\u0094\r\n\r\nAsian buyers have accounted for around 15% of all acquisitions since the start of 2014.