NFS Hospitality, a provider of hospitality, facilities and leisure software solutions, have responded to study results from Deloitte, showing that London is the most attractive hotel investment location in Europe

The study figures, released in anticipation of the Deloitte European hotel Investment Conference, found that 51% of people rate London as the best location compared to 33% for Paris, 30% for Barcelona and 23% for Amsterdam. But response to value was a mixed bag as 52% of respondents agreed that London was overvalued with only 45% believing it to be valued fairly.

The findings highlight that there is still strong and growing interest in the European hotel sector from investors in the Middle East, China and North America. In particular, upscale hotels were found to be the most investable.

Deloitte believe that 52% of hotel owners will focus energies on improving profitability, 49% on rebranding, 44% on capital expenditure programmes and 33% on expansion.

Hotels in the area have been bolstered recently by widespread economic recovery but it’s not just upmarket businesses drawing interest as midscale and budget had 25% and 22% interest respectively.

Nick van Marken, global head of hospitality of Deloitte, said: “There is a significant appetite for hotels in Europe and the UK in particular. In recent months, US private equity buyers have taken advantage of low interest rates and a strong uptick in sentiment.

“After the trough of 2009, a number of deals were done, in the UK in particular, and some of these may well come back to the market. Despite both a good number of portfolios and single assets having completed, there are still opportunities to be had.”

Continuing, he explained: “It is easy to say in hindsight that these acquisitions were done at the right time, but real kudos should go to those who had the courage, got in and did deals even in the darkest days. Now, many will be rewarded if they get out at the right time. Some of those who missed the exit and held on may also be rewarded.”

NFS Hospitality provide hotel software and often share their thoughts on industry related news and research. The company believes improving technology in the sector has led to improved services and helped to entice more investment.

A spokesman for the company said: “While many sectors have stagnated or even gone backwards in some cases, the hospitality sector has remained upbeat, embracing new approaches and new technologies and ultimately attracting more in the way of custom and investment, and it’s not surprising that much of this is happening in London, one of the world’s biggest global cities.”

NFS Hospitality has worked with thousands of clients around the world and has offices in the UK, USA and SA. Visit their website today at www.nfs-hospitality.com to find out more.