Investment in the European hotel sector is on track to crash through the €20b (£14.03b) barrier for the first time, according to the latest research from global property advisor CBRE.
The findings echo real estate company JLL's research (The Caterer, 21 July), which predicted a bumper year for European transactions, with year-on-year volumes up 85% during the first six months of 2015.
CBRE's half-year results confirm this surge of investor interest, with deals amounting to €10.73b (£7.53b), some 85% of the total seen during the whole of 2014. This represents a €4.77b (£3.35b) and an 80% increase year-on-year.
The UK investment market remains vibrant with transactions amounting to €2,693m (£1,888m) in Q2, exceeding the long-run quarterly average by more than €2b (£1.4b).
Joe Stather, information and intelligence manager EMEA, CBRE Hotels, commented: "Taking into consideration the figures to date, pipeline of activity and historical deal trends, we are set for a record-breaking year. The €20b (£14.03b) threshold seems within reach and would set an unprecedented benchmark for European hotel investment; a realisation that the asset class is becoming progressively mainstream."
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