Global hotel investors are targeting Europe as the most favourable destination for their cash, a new survey has revealed.
A strong market and continued growth have put Europe at the top of the Hotel Investor Sentiment Survey, the biannual report from hotel deal broker Jones Lang LaSalle.
In Europe, initial investment yields (a measure of sale price to operating profit) are some of the lowest in the world, the report says. This indicates relative strong trading in the short-term which is more appealing to investors than low sale prices.
"Munich is expected to continue its boom as it emerges as one of Europe’s hot IT spots," said Jones Lang LaSalle’s managing director for Europe, Arthur de Haast. "Over the medium term, investors have most faith in Berlin, Paris, Frankfurt, Dusseldorf and Hamburg."