BUDAPEST: European hotel investments reached €3.74 bln in the first quarter of 2015, more than double the Q1 2014 volumes of €1.73 bln, data published today by commercial property advisor CBRE reveal.
European hotel investments have seen a year-on-year growth of 116% reflecting the strength in hotels as a growing commercial property asset class, and led by a number of factors including high investor appetite for consumer driven real estate asset classes in a time of low inflation and rising consumer spending, CBRE said in a press release.
“The hotel market performed outstandingly in Budapest last year,” analyst Gábor Borbély, Head of Research and Consulting at CBRE in Hungary said. “The average hotel occupancy rate in the capital rose to 75%, and the average room price was 7% higher than in the previous period. The improvement in hotel profitability indicators was even more striking, for example the gross operating profit per room increased by 20%, which was the best performance in Europe,” he added.