European hotel values recorded their third straight year of growth in 2006, jumping by 9.4% according to industry figures.
The market was so healthy that HVS's hotel valuation index recorded growth in all 28 measured markets, the first year since 2000 that this has happened.
HVS director Dominique Bourdais said London had retained its position as the most expensive city in which to acquire a hotel.
"After breaking through the €500,000 (US $679,069) barrier last year, the average value per room has increased to €576,700 ($783,082), a 12% growth over 2005's record values," he said.
Filling out the top five most expensive cities were Paris, Milan, Zurich and Geneva. Survey co-author Elana Bader said extraordinary growth in the top markets was driving the European average up.
"The average European values per hotel room in 2006 have subsequently reached the highest levels in history," she added.
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