London, 06 April 2017 -The UK is the top European target for hotel investment in 2017, according to a new
CBRE’s ‘European Hotels Investor Intentions’ Survey found that respondents view the UK as the most attractive market in Europe for hotel investment, reflecting a growing confidence in the UK real estate market following a post-referendum slowdown in investment activity in 2016.
Germany is rated by investors as the second most attractive investment market for hotels, followed by Spain, France, and Italy and the Netherlands.
Miles Gibson, Head of UK Research at CBRE, commented: “2017 will see some complex opening manoeuvres in the Brexit negotiation, not least because of the potential for some twists and turns in European politics too. Brexit will take time but the wheels of the economy will still turn and there is no doubt that the UK’s particularly strong economic fundamentals will further underpin investor confidence in purchasing UK property.”
In a clear reflection of the gathering strength of hotel investment demand the survey also revealed that 87% of respondents are planning to invest the same or more into hotel real estate in 2017. This suggests that the hotel investment market has become more attractive compared to the situation a year ago.
The survey findings further revealed that hotel investors cited “economic growth” as the greatest opportunity to European hotel investment in 2017. This was closely followed by “the cost and availability of debt”. However, the primary concern for hotel investors in 2017 is “asset pricing and geopolitical influences”. This marks a difference in the perception commercial-sector-investors have compared to hotel investors, as the former see "rapid interest rate increases” and “a major global economic shock” as the major risks.
Joe Stather, Research Manager, CBRE Hotels, said:” The wide-ranging appeal of hotels as an investment asset class clearly demonstrates hotels’ transition into the mainstream. The general investor appetite to invest more into the hotels sector through 2017 should result in an increase in the European-wide hotel deal volumes, but we may find that growth in deal activity will face the challenges of limited supply.”
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To view the entire survey results, please click here.
Notes to editors
The results of this survey are based on answers from 485 respondents – all of which are real estate investors with a particular interest in hotels.
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.