Total European hotel transaction volume fell by 69 per cent in the year of the pandemic following a record high the previous year when €27 billion-worth of hotel deals were struck.
According to the annual European Hotel Transactions 2020, published this week by HVS and its brokerage and investment services division HVS Hodges Ward Elliott, hotel transaction volume reached €8.5 billion last year.
Single-asset transactions accounted for 65 per cent of all deals, totalling €5.5 billion, while portfolio deals represented 35 per cent at €3 billion.
Before the pandemic, 2020 was set for record transaction levels.
The year started strongly with transactions in January and February up 2.5 per cent on 2019 with volumes of €2.7 billion and a 1.8 per cent rise in the average sale prices per room to €170,000.
Subsequent lockdowns across Europe coupled with limited availability of debt financing pushed transaction levels down by 66 per cent with only one type of buyer, high-net-worth individuals, investing in larger volumes of hotels than in the previous year.
A total of 201 European hotels and more than 44,000 rooms exchanged owners in 2020.
The UK retained its position at the top of the transaction table, posting the highest