The UK is the top European target for hotel investment in 2017, according to a new survey by global property advisor CBRE.
CBRE’s ‘European Hotels Investor Intentions’ survey found that respondents view the UK as the most attractive market in Europe for hotel investment, reflecting a growing confidence in the UK real estate market following a post-referendum slowdown in investment activity in 2016.
Germany is rated by investors as the second most attractive investment market for hotels, followed by Spain, France, Italy and the Netherlands.
'2017 will see some complex opening manoeuvres in the Brexit negotiation, not least because of the potential for some twists and turns in European politics too,' commented Miles Gibson, head of UK Research at CBRE. 'Brexit will take time but the wheels of the economy will still turn and there is no doubt that the UK’s particularly strong economic fundamentals will further underpin investor confidence in purchasing UK property.'
The survey also revealed that 87% of respondents are planning to invest the same or more into hotel real estate in 2017, suggesting that the hotel investment market has become more attractive compared to a year ago.
'The wide-ranging appeal of hotels as an investment asset class clearly demonstrates hotels’ transition into the mainstream. The general investor appetite to invest more into the hotels sector through 2017 should result in an increase in the European-wide hotel deal volumes, but we may find that growth in deal activity will face the challenges of limited supply,' concluded Joe Stather, research manager, CBRE Hotels.
