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Europe is the World’s Most Attractive Hotel Investment Destination

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by Onyx CenterSource in Blog , Hospitality Trends & Research ,

More people invest in hotels in Europe than anywhere else in the world.

Hotel investment has been on the up across the world in the last few years, and according to the latest findings, Europe is the most attractive place in the world for investors to spend their money.

Property firm Jones Lang Lasalle (JLL) looked at a number of different factors and said that Europe came out on top as the best place for investors to turn in. Positives that made this the reality included factors such as strong returns, fair value and better debt help from financial institutions.

“Whilst the question of fair value resounds through the sector, Europe still offers more upside on the recovery curve, with per-key values of assets still below the previous peak in both Western and emerging Europe. In 2015, we will see private equity investors look to higher yielding markets such as Southern and emerging Europe, as investors continue to follow opportunities” said Christoph Harle, chief executive officer, EMEA, JLL Hotels & Hospitality Group.

JLL also stated that this should feed into 2015, with the Europe, Middle East and Africa (EMEA) region likely to see an increase in money coming into the hotels market in investments. In 2015, JLL predicts that EMEA will see some $25 billion (£16.5 billion) in investment. This will be a sizeable increase on the $21.5 billion recorded last year.

The health of this region and its attractiveness to investors can be seen easily in how much of the worldwide market it represents. Should 2015 perform as well as JLL expects it to, EMEA will account for a substantial 36 per cent of all hotel transactions globally.

Western Europe is expected to be top of the pile when it comes to investment this year, with the likes of the UK and Germany set to perform well. In addition, outside of the EMEA region, it is also expected to be a bumper year for the US hotels sector.