Hotel investment during the first half (H1) of 2011 in five core European markets reached €2.5bn, a rise of 29% on the figure for the same period last year, according to a report by BNP Paribas Real Estate.
The UK remained the most active hotel investment market in Europe during H1 2011 with €1bn spent on properties.
In terms of revenue per available room (revPAR), the UK was stable, while occupancy increased by 1.2% to 72%.
In the first half of the year, the UK’s average daily rate (ADR) rose by 1.5% on the figure for H1 2010, and London’s occupancy rate increased to 82.5%.
Hotel occupancy in France increased by 2.5% to 65.6% for H1 2011, revPAR was up by 5.9% and ADR rose by 2.8%.
RevPAR in Italy increased by 4.5% and Spanish hotels recorded the largest revPAR rise of 8.9%.
Germany’s occupancy rate stood at 62.9%, an increase of 4%, ADR rose by 1.5% and revPAR increased by 5.6% compared with H1 2010, according to property-magazine.eu.