European Hotel Investment Remains Buoyant in Q1 2019

Investment volumes stable in 12-months to Q1 2019 at €23 billion

Investment activity driven by growth in the UK, Spain and Germany

London, 07 May 2019 – European hotel real estate investment volumes reached €23 billion in the year to the end of Q1 2019, according to the latest research from global real estate advisor CBRE.

European hotel investment activity in the first quarter of 2019 was driven by continued growth, particularly in the UK, Spain and Germany. UK hotel investment volumes accounted for 35.5% of capital deployed in the country in the 12 months to Q1 2019, reaching €8.2 billion and reflecting a 15.1% year-on-year increase. This growth was largely a result of a particularly strong start to 2019, with Q1 up 24.5% on Q1 2018.

Spain remains Europe’s second largest hotel investment market. Deals amounted to €4.2 billion in the 12-months to Q1 2019, up 17.5% on the previous year. Germany experienced modest growth in hotel deal volumes. Over the last 12-months, investment reached €3.9bn, up 7.1% on the preceding 12 months and representing 17.0% of total European hotel investment.

Hotel investment in France amounted to €1.3 billion through the last 12-months. While this represented a decline of 6.0% year-on-year, the performance elevated France to Europe’s fourth largest market. Other notable risers include the Czech Republic (560.7%), and Switzerland (208.9%).

Paul Collins, Head of Hotel Investment Properties UK & Ireland CBRE, commented: “Following a record year for hotel investment, 2019 is off to a strong start. Growth, in key European markets such as the UK and Spain, is a testament to the strength of the hotel sector and demonstrates continued demand for alternative investments and operational real estate.”

A significant amount of investment has come from Israeli and Asian capital which is a trend that we have seen over the past 12 months and one we anticipate to continue.”

Hotel yields remained flat across the majority of European markets in the first quarter of 2019 reflecting steady investor demand.   Exceptions to this trend were in Iberia, Amsterdam and Helsinki, where an increase in investor demand resulted in falling yields for hotels operated under operational lease agreements.

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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.