European hotel real estate investment is up +5.8% year-on-year in the twelve months to Q2 2018, totalling €21.0 billion for the period. Liquidity has increased in most key European markets and sustained investor demand continues to put pressure on yields.

Some of the key highlights include:

  • In the twelve months to Q2 2018, €8.2 billion was invested into UK hotel real estate, up +95.1% year-on-year;
  • In H1 2018, the German hotel transaction volume increased by +5.8% year-on-year;
  • Sustained demand for hotel stock in the Netherlands pushed the deal volume beyond €1.8 billion for the twelve months to Q2 2018;
  • Yields in both Lisbon and Porto have fallen amid greater investor appetite for hotel assets in Portugal; and
  • Brussels has experienced a fall in yields as investor confidence in the market returns.