According to Jones Lang LaSalle Hotels (JLLH), the UK hotel real estate market is showing signs of a revival, with £302m of single asset transactions in London and the regional UK markets as at the end of August.

This volume is close to the £368m recorded in the whole of 2002, with transactions in London accounting for 57 per cent of this volume, compared with 70 per cent in the last two years.

JLLH attributes the growing level of interest in regional UK hotels to their recent robust trading performance, whilst London remains attractive to those who view the current low point in the trading cycle as an opportunity to enter a major market.

However, the group says that – despite the interest – the market remains relatively illiquid which is helping support prices for prime properties.

Elsewhere, JLLH reports that total European hotel investment in the first eight months of 2003 was Euro5.4bn, up 84 per cent on the same period last year. Details: www.joneslanglasalle.co.uk