hotel investment volumes totalled €3.8 billion in the third
quarter (Q3) of 2016, taking the total turnover since the start of the year to €10.3 billion.
Q3 2016 was overall
more positive compared to the first half of 2016 with the decline in deal
volumes only down by 6% compared to a strong Q3 2015, according to the latest
figures from global commercial property advisor CBRE.
Q3 2016 saw Spanish hotel investment record
the highest year-on-year growth of 162%, with transaction volumes reaching €537 million. This
was largely driven by strong investor demand to buy and capitalise on the improving economic
and performance recovery which has continued to gather pace. Transactions this
quarter spanned the country, including gateway and secondary cities and resort
locations. A notable transaction was the five-star Pullman Barcelona Skipper,
241-keys and sold off a guide price of €90million. Italy and Ireland have also
seen a year-on-year increase of 135% and 106% respectively in Q3 2016.
The German hotel investment market has remained the
most attractive to investors with transaction volumes reaching €856 million in Q3 2016. Germany
continues to offer consistently high levels of liquidity and strong market
Joe Stather, Information and
Intelligence Manager EMEA, CBRE Hotels, said: “European hotel transaction volumes continue to reflect the
challenging current climate and
the decline is in line with the slowdown across all mainstream European
commercial property. However, the rate of negative growth in hotels is slowing
and a strengthening deal pipeline in the UK, Spain and Italy suggests more
buoyant deal volumes for the beginning of 2017".
Jorge Ruiz Andres, CBRE Hotels, Spain, said:”Investor
appetite for Spain is soaring on the basis of strengthening economic
fundamentals, performance growth across the country and attractive asset
pricing relative to other consolidated European destinations. The liquidation
of non-performing loans will heighten transaction activity in the market over
the coming months and we also recognise a number of value-add and core
opportunities for more conservative sources of capital".
- ENDS –
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