The UK has regained its leading role in European hotel transactions with sales volumes accounting for 25% of total activity.
UK transaction volumes reached €5.4b (£4.8b) in 2017, up from €3.6b (£3.2b) in 2016, according to the annual European Hotel Transactions
European hotel transaction volume overall reached â¬21.7b (£19.3b) in 2017, up 22% on 2016 and the second largest figure ever recorded.
Single asset sales in the UK saw values of â¬3b (£2.7b), while portfolio activity accounted for â¬2.4b (£2.1b), despite ongoing political uncertainties. The second half of the year saw increased activity month-on-month in Europe, driven by the close of some of the year's largest portfolio transactions, including Aprirose's £525m acquisition of QHotels in the UK.
London was also once again the leading European hotel transaction market, with a total volume of some â¬2.5b (£2.2b), ahead of Amsterdam at â¬1.3b (£1.2b), and accounted for 63% of all single asset transactions in the UK.
The largest deal of the year in London was the sale of the Grosvenor House, a JW Marriott hotel (pictured), by Subrata Roy's Sahara India Pariwar to the Ashkenazy Acquisition Corp for £550m.
Peter Szabo, associate at HVS Hodges Ward Elliott and report co-author, said that a year of strong revpar growth across most of Europe was reflected in transaction levels, particularly in London.
Moving into 2018, interest rates, staffing pressures and the UK's upcoming divorce from the European Union in March 2019 will influence the transactions market.
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