Hotel investment in Europe, the Middle East and Africa more than doubled in 2010, from £2.5bn ($4bn) to £6.5bn ($10.5bn), according to the ‘Hotel Investment Outlook’ report by Jones Lang LaSalle Hotels.
The majority of investors focused on gateway cities, with London and Paris the favourite investment destinations.
In the UK, investment volumes reached €2.4bn ($3.3bn) compared with €400m ($551m) in 2009, with London accounting for over 80% of investments.
The majority of transactions were funded by European or domestic capital; however, Asian capital more than doubled, accounting for 12% of investments, the report said.
The report revealed that the lack of new financing resulted in deal sizes remaining small. Over 70% of all transactions had a purchase price below €50m, while only seven deals had a price tag of more than €200m.