As the mild weather is making summer feel tantalisingly close, I'm sure I'm not the only one day-dreaming about a European City break. It turns out investors are similarly inclined, opting to jet to the warmer climes of Italy and Spain and pump some capital into the hotel scenes of Rome and Madrid, with London still receiving ample interest too for the staycationers.

The sector is booming at all asset levels, all the way from economy to upper-up scale, with investors citing good yields, good returns and hotels outperforming other asset classes. Projected supply and demand dynamics are making the sector attractive to investors both old and new.

CBRE has seen strong bids from buyers looking to acquire the best hotels, reflected by a 34% increase on 2023's asset investment numbers – the largest year-on-year increase for any sector in the region.

Sangria anyone?