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UK leads the way as Europe sees record hotel transactions in 2015

03 March 2016 by
UK leads the way as Europe sees record hotel transactions in 2015

The UK accounted for nearly half of all European hotel investments during 2015, according to the annual European Hotel Transactions report from hotel consultants HVS Hodges Ward Elliott.

It was a record breaking year for total hotel transactions in Europe, with investments up 65% year-on-year to £18.3b, surpassing the pre-recession levels of £15.7b and £14.5b recorded in 2006 and 2007 respectively.

Investors from Europe accounted for £8.4b worth of transactions, with activity from the Middle East up 140% to £3.4b and from North America up 46% to £4.2b.

The value of UK transactions was £8.8b, amounting to 48% of all the total European sales. Germany recorded the second highest number of hotel sales. The UK also achieved more portfolio and single asset transactions than any other European country.

Within the UK, London accounted for 63% (£1.4b) of all single asset transactions. Major deals included the sale of the Ace Hotel London Shoreditch by Starwood Capital for £150m, setting a new record price per room of £581,000 for East London. Meanwhile, St Ermin's hotel (pictured) was acquired by the Chen family's Sunrider International group for £178.6m, which equates to £541,035 per room.

Notable transactions outside London include CDL's acquisition of the Cambridge City Hotel from London & Regional for £61m or £311,000 per room.

Adrian Ruch, senior associate at HVS Hodges Ward Elliott, said: "Despite current economic woes and increased volatility in the stock markets, there is no immediate end in sight for interest in the hotel sector as underlying operating fundamentals are trending upwards.

"We would expect strong investor demand to continue with no immediate slowdown, particularly given that the fourth quarter of 2015 accounted for a third of the year's total transaction volume."

St Ermin's hotel changes ownership >>

Singaporean investor buys Cambridge hotel for £61.5m >>

Increased investor interest boosts European hotel deals by 86% >>

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