Madrid, Amsterdam and Barcelona have earned top honours for hotel operating performance expectations, according to global real estate firm JLL’s recently released Global Hotel Investor Sentiment Survey. Six of the top 10 destinations that investors are most positive about are in Europe, the survey reveals.

JLL recorded a number of investors’ hotel operating performance expectations, calculating a net balance based on “the proportion of respondents who expect hotel operating performance to increase, minus the proportion of respondents who expect performance to decrease”. This measurement offers insight into current levels of confidence in the sector.

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While the overall outlook for hotel investors has decreased from a net balance of 39% in 2016 to 23%, cross-border transactions remain at an all-time high, according to the report. Investors expect a tightening of yields in the Europe, Middle East and Asia (EMEA) region, which has boosted the value of cities such as Madrid, Dublin, Munich and Barcelona.

Despite concerns over the UK’s impending departure from the European Union, Philip Ward, EMEA CEO of JLL’s Hotels & Hospitality Group, says that overall, “real estate private equity funds and institutional investors [are continuing] to raise a significant amount of capital”.