Significant amount of capital ready to invest in European hotels again

There is a significant amount of capital targeting European hotels, looking for the right opportunities, which is largely maintaining current pricing across prime markets, according to Savills.

The international real estate adviser expects to see some of this capital deployed from the second half of the year onward, in line with a closer alignment between buyer and seller expectations. Mature markets and key gateway cities are likely to support capital preservation, while, operationally, the recovery will be driven by the degree of flexibility around international travel.

Overall, European hotel investment figures reached €2.16 billion ($2.6 billion) in the first quarter. At €746.5 million ($911.9 million), the United Kingdom remains the most liquid European hotel market, accounting for a 34.6 percent share of transaction volumes.

The maturity of the hotel sector across both the United Kingdom and Germany, coupled with strong domestic travel profiles, has su