Brightly lit hotel in the UK
The UK has sealed its position as the in demand country in Europe for hotel property investment in 2018.
Taking the top spot for the second year running, the survey revealed that despite Remain fans claiming that leaving the EU will cause foreign investment to dry up, the UK is still the most attractive option on the continent for hotel investment.
2017 was a record year for the UK, who confirmed its position by attracting £5.4 billion pounds worth of investment.
Overall, this represents a 39 per cent year-on-year increase.
The data, released by CBRE’s annual European Hotel Investor Intentions Survey, revealed Germany and Spain ranked second and third place respectively.
Making up the top five, France came fourth with eight per cent while Ireland and Italy came in joint fifth place with six per cent.
More than two-thirds of respondents – all investors in the industry – identified these markets as preferred investment opportunities for 2018.
What’s more, the results have improved for the UK compared with last year.
35 per cent of investors selected the UK as their number one target market, representing an 106 per cent increase from the year before.
UK and EU merged flag outside Houses of Parliament
The UK is attracting a wide range of international investors seeking opportunities in key cities
Paul Collins, head of hotel investment properties for UK and Ireland, commented: “The UK is attracting a wide range of international investors seeking opportunities in key cities such as London, Manchester and Edinburgh.
“Investor appetite for quality regional hotel will remain resilient and despite the UK’s impending withdrawal from the European Union, our survey results suggest that any restrictions to the growth of UK investment are more likely to be because of restricted supply rather than a reduction in demand.”
The survey results also found that 38 per cent of those questioned are targeting predominantly ‘gateway’ cities, which may include airport and port cities.
Capital cities came in second place with 36 per cent, while secondary cities ranked third with 16 per cent.
Busy London street with hotel in view
Lastly resort locations followed with nine per cent stating their interest.
In addition, consulting firm PwC has released its hotels forecast 2018. The findings concluded: “We forecast both overseas inbound and domestic investment into the hotel sector to continue into 2018, with ongoing growth in hotel sector appetite from the more institutional and mainstream real estate investors.”
This interest in hotel investment marks a change from comments made by anti-brexit Travelodge boss, Peter Gowers, who recently based the public’s decision to leave the EU for putting jobs at risk in the hospitality industry.
Gowers, 44, projected the historic decision to leave had the potential to put one million jobs at risk.
However, it seems that investment within the UK hotel industry is also continuing despite Brexit.
Recent data collected by the World Travel and Tourism Council (WTTC) has projected that tourism jobs including employment by hotels will account for 1.9 million jobs by 2028.
Europe’s most sought-after cities for hotel property investment
1. UK – 35 per cent
2. Germany – 18 per cent
3. Spain – 16 per cent
4. France – eight per cent
5. Ireland and Italy – six per cent