Total European hotel transaction volume reached the highest annual level ever recorded last year – with €27.1 billion-worth of deals being struck, according to the annual European Hotel Transactions report.
The largest amount of capital was poured into the UK with some €5.3 billion (£4.4 billion) – 23 per cent of total volumes.
This was, however, a 15 per cent decrease on the previous year.
German destinations booked the second most investment volumes at just over €4 billion (18 per cent of total volumes), up six per cent on 2018 levels.
In terms of room count, however, Germany transacted 21 per cent of all hotel rooms and 18 per cent of all hotels while the UK came second with a fifth of all hotel rooms and 22 per cent of the total number of hotels.
“Record low interest rates amongst various European countries and continuing yield compression in key markets have helped to drive large investment volumes compared to previous years,” commented report co-author Shaffer Patrick, analyst, HVS Hodges Ward Elliott.
“Asian investors have deployed 84 per cent more capital in 2019 than in 2018, with a dominating presence from Chinese, Singaporean and South Korean investment firms and sovereign wealth funds.
“These factors, combined…