IHIF 2013: The UK accounted for 38% of total transactional volumes in the European hotel market last year.

According to HVS London's 2012 European Hotel Transactions report, €1.4bn (£1.2bn) was transacted in the UK hotel market out of a total of €5.6bn across Europe in 2012.

However, European hotel transaction volumes last year fell 21% on the €7.1bn recorded in 2011 and remain below the 10-year average of €9.5bn since 2002.

Total volume was above the 2009 trough of €2bn.

High net worth individuals increased acquisition activity, accounting for 24% of transaction volume in 2012. Private equity firms decreased their activity, with a volume of 7% in 2012 compared with 17% in 2008.

The hotel investment market was dominated by hotel operators, high net worth individuals and real estate investors in both the single-asset transaction and portfolio transaction markets.

The UK was the most active market for single-asset transactions, with a total volume of almost €1.4bn and some 33 hotels.

Germany was a particularly active market for portfolios.

Only 12% of the total transaction volume could be described as distressed selling, HVS London noted.

HVS London managing director Charles Human said: "Although a long way off the flood of distressed sales that has been hoped for by many for several years, there has been an increase recently in the volume of hotels coming to market, particularly out of insolvency. Buyer interest is expected to continue to focus on the main northern and western European markets, notably the UK, Germany and France."