Investment in Germany’s hotel market hit a record high in 2014 as the total transaction volume soared by 80% compared with the previous year.

Investment in Germany’s hotel market hit a record high in 2014 as the total transaction volume soared by 80% compared with the previous year.

Sales were concluded on 70 hotel properties for a total €3 bn, outstripping the previous record years of 2006 and 2007 by 30%, according to figures published by JLL.

The number of transactions increased by 15%, with the majority concentrated in the fourth quarter when 30% of all deals took place. Activity was more evenly spread through the year than in 2013, when 43% of sales were in the last three months.

Individual deals accounted for 57 of the 70 sales, with an average value of €31 mln, compared to €21 mln in 2013. Institutional and private investors were responsible for 80% of individual transactions.

The amount of capital invested in portfolios more than doubled from €530 mln to €1.2 bn. At the top end of the market 12 hotels fetched a price of €50 mln or more, compared to three during the previous year.

JLL said it expected 2015 to be another strong year for the German hotel market, in view of the low interest rates, weak euro and greater willingness among lenders to provide finance.