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Cbre: Steady stream of investment into hotel assets

By Friday, 28 June 2024 14:56

The European hotel investment market is set to go on growing. According to Cbre's latest European Hotel Investor Intentions Survey, 70% of investors plan to increase their asset allocation in the sector, driving capital confidence in hotel assets. The good performance from hotels, together with the continuing expansion of the tourism industry and the stabilization of interest rates are all driving capital confidence in the world of hôtellerie.

Since last year Italy has ranked third in the most attractive destinations in Europe. Despite declining overall investment volumes, in 2023 hotel assets attracted more than 20% of the capital invested in domestic commercial real estate. 
And European investors are championing Italian cities with Rome and Milan in the top-ten, respectively in fourth and eighth place of Europe’s most attractive cities. This ranking puts London in first place, buoyed by the destination's long-term potential and expected higher levels of spending on inbound travel. Madrid has overtaken Paris to become the second most popular European destination for investors. Indeed, the Spanish capital is becoming increasingly attractive to global capital, with significant interest from Latin America.

"The European hotel market is incredibly dynamic and the results of the survey show a bullish attitude on the part of investors, who are looking to capitalize on growth in Europe,- explains Silvia Gandellini, head of capital markets at Cbre Italy. - In the first quarter of 2024 Italy was the second European market for investments in the hotel sector, totalling €330 million. We expect these results to continue in the second half of the year, with possible signs of yield compression for new trophy asset transactions.”

Massimiliano SartiMassimiliano Sarti
Journalist

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