European Hotel Investment surpasses EUR14 billion on the year to date

UK and Spain Hotel Investment markets show strong growth

London, 20 November 2017 - Total European hotel investment volumes increased by 33% year-on-year, for the third quarter (Q3) of 2017. This contributed to a 16% year-on-year increase on the year- to- date, with hotel transaction volumes exceeding €14 billion, according to the latest data from global real estate advisor, CBRE. 

The UK and Germany remained the largest markets in the first three quarters of 2017, accounting for 55% of the transaction volume. Deal volumes in both the UK and Spain –  the third largest hotel investment market –are already ahead of their respective full-year 2016 volumes.

International investors continued to show strong appetite for the UK hotel sector despite ongoing political uncertainty. The UK recorded  the highest investment transaction levels, which saw volumes reach €2.6 billion in Q3 2017, up by 195% on the same period last year. Although last year was impacted by the referendum. The growth was largely driven by various high-profile hotel portfolio sale in London and the regions, including the sale of the 1,059-room Hilton London Metropole and the long-leasehold interest of the 790-room Hilton Birmingham Metropole, to Henderson Park for £500m. UK hotel yields remained mostly stable or fell marginally post the EU referendum.

Paul Collins, Head of Hotel Investment Properties, UK & Ireland, at CBRE, commented: “The UK hotel market has seen strong growth which has been supported by favourable exchange rates. Buyers have comprised of UK and international parties, which have included existing players and new entrants to the market.”

Transaction volumes in Spain also remained robust and recorded an increase of 112% year-on-year in the year to Q3 2017. 

Hotel yields for key German cities continued to decrease, highlighting the strong investment appetite in the market. Italy, Benelux and the Nordics also posted strong growth in comparison to year-on-year.

Click here to download our Q3 2017 Europe Hotel Investment MarketView. 

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue).  The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 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.
​​​