Driven by bank sales, hotel investment is expected to remain stable across the Europe, Middle East and Africa (EMEA) region during 2011, according to a report by Jones Lang LaSalle Hotels.

The Hotel Investment Outlook revealed that hotel transaction volume is expected to reach €8.3bn ($11.3bn) in 2011, an increase of 18% on the €7bn ($9.5bn) of deals recorded in 2010.

The report forecasts that investment activity will be strongest in the UK and Ireland.

The bulk of investment activity will be driven by distressed asset sales by financial institutions as they look to retrieve capital to achieve regulatory targets.

While bank sales will dominate in 2011, private equity funds will also emerge as leading sellers as funds reach their liquidation dates.