London most attractive European City for hotel investors

Deloitte survey ranks London top for European hotel investors

25 November 2014
A survey published by Deloitte has found that London is the most attractive hotel investment destination in Europe.

Over half of the survey respondents ranked the UK’s capital ahead of Paris, followed by Barcelona and Amsterdam.

Against the backdrop of a stagnant European economy, upscale hotels are the main focus for investment. However, midscale and budget are also attracting interest. Looking ahead to next year, European hotel transaction activity is expected to be dominated by international investors led by money from North America, China and the Middle East.

Outside London, respondents to the survey favoured Scottish cities as the target for investment in 2015, with Edinburgh and Aberdeen showing the greatest interest, followed by Manchester and Bath.
Nick van Marken, global head of hospitality at Deloitte, said: “There is significant appetite for hotels in Europe and the UK in particular.  In recent months, US private equity buyers have taken advantage of low interest rates and a strong uptick in sentiment”.

Nick van Marken added “Buyers who took the plunge two or three years ago have been rewarded with some values nearly doubling. It is easy to say in hindsight that these acquisitions were done at the right time, but real kudos should go to those who had the courage, got in and did deals even in the darkest days”.

The Deloitte survey was completed by more than 120 owners, lenders, developers and investors in the hospitality sector.
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