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Sign in Sign up for a FREE subscriptionEuropean hotel investment increases due to high demand for alternative property types
Despite the total commercial real estate investment in Europe declining 7.8 percent year-on-year in the 12 months to second quarter 2019, hotel investment saw an increase of 5.3 percent over the same period, totaling €24.3 billion ($27 billion), according to CBRE.
“European hotel investment volumes have remained strong despite the slowdown in wider commercial real estate,” said Miguel Casas, head of investment properties, continental Europe, at CBRE. “Operational and alternative property types remain in high demand, and there is expectation that this trend will continue due to sustained income growth. Investors have notably become more active in secondary locations when availability of large asset deals and portfolio deals have been scarce, and single-asset sales have especially been a driver in this successful quarter for the hotel market.”
The rise of hotel investment is a result of the increase in demand for operational and alternative property types, give