The UK accounted for almost half of the record £18.3 billion invested in European hotels last year, a recent report revealed.
Hotel transactions across Europe were up 65 per cent year-on-year, beating the pre-recession levels of £15.7bn in 2006, the research by hotel consultants HVS Hodges Ward Elliott showed.
UK investments totalled £8.8bn, a massive 48 per cent of total European sales.
Within the UK, London made up 63 per cent, or £1.4bn, of all single asset transactions with major deals including the sale of the Ace Hotel London Shoreditch by Starwood Capital for £150 million, or £581,000 per room.
Investors from Europe accounted for £8.4bn of investment while £4.2bn came from North America and £3.4bn from the Middle East.
Germany registered the second highest number of hotel sales with transactions more than doubling compared to 2014. Spain also saw investment double year-on-year to £1.6bn.
Sarah Cade, managing director of Avon Data, said: “This is yet more evidence that the UK hotel industry is very buoyant.
“Investors are being attracted by continued rises in revenue per available room (RevPAR) in hotels across Europe and particularly in the UK.
“Hotels still offer an opportunity to achieve higher investment yields than other property types.
“Our hotel management software, Hotel Executive, can help owners and managers to maximise this return on investment by driving up revenue, increasing efficiency and boosting online exposure and repeat business.”
Posted on April 21st, 2016 by Avon Data: Category Industry News
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