London is leading Europe in terms of single asset hotel transactions this year, according to a report by Jones Lang LaSalle Hotels.

The UK capital has already seen 845m euro (£570m) of single asset hotel sales this year, way ahead of 2005’s full year figure of 781m euro (£526m).

Rob Seabrook, executive vice president of Jones Lang LaSalle Hotels said: “So far this year we have seen unprecedented attention on the London market, with high value transactions including the sales of the Great Eastern Hotel for 219m euro (£148m) and the Marriott Park Lane for 153m euro (£103m).

“Single asset transactions (in excess of 10m euro, £6.7m) have reached 2.6bn euro (£1.8bn) and half of this came from UK deals (1.36bn euro, £0.9bn).

“In Continental Europe, Italy, Germany and France have led the single asset deal market accounting for 843m euro (£568m). Italy came in pole position thanks to the sale of the Four Seasons in Milan for a record price in excess of 200m euro (£135m), representing the highest price per key ever paid for a single asset in Europe.”

Total European hotel transactions so far this year have reached 9.3bn euro (£6.3bn), with portfolio sales making up 6bn euro (£4bn) of that and the UK accounting for 55 per cent of all portfolio sales.

Jones Lang LaSalle predicts investor interest in the UK is likely to continue, but that gateway cities in Western Europe, particularly France, the Netherlands and Italy are also set for growth in investment activity.

Hotel investment in Eastern Europe has remained limited, but Seabroook claims there are signs that activity will increase, particularly in Slovakia, Russia and Croatia. Details: www.joneslanglasalle.co.uk