Hotel investors play the sleeping-away-from-home markets
Real estate investors are currently favouring the hotel sector, both in Europe and further afield. Q1 2015 numbers from the main consultants confirm the interest; CBRE says that hotel investment volume in the quarter across Europe reached €3.74 billion, more than double the same period last year. Real Capital Analytics reports that 261 hotel properties transacted across Europe in the first quarter, giving an investment volume of €6.0 billion and a year-on-year increase of 93 percent.
The year-on-year growth is attributed to an increasing recognition among institutional investors that hotels are a viable real estate asset class, led, CBRE says, “by a number of factors, including high investor appetite for consumer-driven real estate asset classes at a time of low inflation and rising consumer spending.”
Joe Stather, information and intelligence manager EMEA at CBRE Hotels, adds: “The surge in hotel investment volumes indicates the continuing investor appetite