CBRE predicts record investment levels in European hotels

06 August 2015 by
CBRE predicts record investment levels in European hotels

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."

UK hotel transactions up 172% in 2015 >>

American money is driving strong UK hotel investment market >>

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TagsFinance and Hotels
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