Hotel investment volumes reached €8 bn in Europe, the Middle East and Africa during the first three quarters of 2013, only slightly behind levels for the whole of 2012, according to new research from Colliers International.
Hotel investment volumes reached €8 bn in Europe, the Middle East and Africa during the first three quarters of 2013, only slightly behind levels for the whole of 2012, according to new research from Colliers International.
The adviser predicts total hotel investment activity in EMEA will exceed the €8.3 bn transacted in 2012 before the end of 2013.
The UK continues to be the most liquid market with €2.1 bn of hotels transacted, followed by France with €1.6 bn and Germany with €773 mln, following major acquisitions by Qatar Holdings of the Park Land Hotel for €356 mln and the Concorde Lafayette Hotel in Paris for €466 mln.
The most dominant buyers of hotel real estate were institutional investors, which increased their share of total hotel investments from an average of 39% in the last five years to 50% in 2013.
Investors were also very active in Amsterdam, Munich, Frankfurt and Vienna, with €744 mln invested in German hotels so far this year. This was boosted by the acquisition of the Queen Moat Portfolio in Germany by Fattal Group for €285 mln in the first quarter of 2013.
'Investors are primarily concentrated on prime assets in core markets subject to relatively stable economic conditions in Western Europe,' commented Dirk Bakker, head of Colliers International’s hotels team in the Netherlands. 'In addition to the UK, France and Germany, Amsterdam is becoming more en vogue due to an over-stressed market in Paris and London.'
In contrast to the rest of Eastern Europe, Poland was deemed one of the most promising countries for investors, he added.
Colliers research report is attached below. The December edition of PropertyEU Magazine features a special report on hotel real estate investment during 2013.
