According to CBRE’s European Hotel Investor Intentions Survey 2018, the UK, Germany and Spain are the three most attractive hotel investment destinations in Europe, with more than two-thirds (69%) of investors identifying these markets as the preferred countries for hotel investment in 2018.
The UK has retained its position as the most sought after destination in Europe for hotel real estate investment in 2018. 35% of respondents selected the UK as their target market for hotel investment, an increase of 106% compared to 2017.
The UK’s number one spot was reinforced by a record year for hotel investment which saw the UK register €6.2bn, a 39% increase year-on-year, and the highest hotel investment volume of all the European countries in 2017.
Paul Collins, Head of Hotel Investment properties for UK & Ireland, commented: “The UK is attracting a wide range of international investors seeking opportunities in key cities such as London, Manchester and Edinburgh. Investor appetite for quality regional hotels will remain resilient and despite the UK’s impending withdrawal from the European Union, our survey results suggest that any restrictions to the growth of UK investment volumes are more likely to be because of restricted supply rather than a reduction in demand for hotel assets.”
In a clear reflection of the gathering strength for European hotel investment, 94% of respondents cited that they are planning to invest either the same or more capital into hotel real estate in 2018 compared to 2017. This highlights the growing attractiveness of hotels amongst an increasingly diverse investor base.