Core-market European hotel investment increased by almost a third in the first six months of 2011 year-on-year, as €2.5 billion was ploughed into the market according to a new report out this week from BNP Paribas Real Estate.
Its report, concerning hotel investment in France, Germany, Italy, Spain and the UK, said that the latter remained the most active market with nearly €1 billion-worth of investment.
In terms of Revenue per available room (RevPAR) Spain saw the largest year-on-year increase with 8.9%. Italy had the highest RevPAR with €64.1.
Andrew Cruickshank, international investment director at BNP Paribas Real Estate, said: “It is good to see the hotel investment market active again, particularly in the portfolio transactions area which fell off a cliff in 2009.”