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UK leads way in European hotel investment market for record 2015

04 February 2016 by
UK leads way in European hotel investment market for record 2015

The UK led the way for hotel investment in Europe last year with £7.1b of acquisitions, an increase of 134% year-on-year, according to CBRE Hotels.

It was followed by Germany and France, each with £3.4b and £1.5b worth of investment respectively.

The European hotel market had a record total investment of £17.5b, an increase of 79% year-on-year. This exceeded the projected figure for hotel investment for 2015 by £2.1b.

The fourth quarter saw 31% of capital allocated to hotels, an increase of 101% compared with Q4 2014, while the hotel share of European real estate investment has increased by 6% since the last market peak in 2007.

Dominic Murray, head of EMEA brokerage, CBRE Hotels (pictured), said: "A heightened allocation of capital into the sector has led to strong pricing and yield contraction against a backdrop of operating performance recovery. Hotel operators are finding the opportunity to drive average room rates owing to robust levels of occupancy and continued growth in demand."

CBRE predicts record investment levels in European hotels >>

UK hotel transactions up 172% in 2015 >>

UK hotel investments rises 47% to £1.89b in first quarter of year >>

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