Investors are rediscovering the appeal of European golf resorts, with in excess of €386m (US$491m, £301m)-worth of major single asset transactions in golf occurring this year, according to a new report by global hotel consultancy HVS London.

The European Golf Resort Investment report suggests that the sector is starting to regain its momentum, with institutional investors and private equity organisations making more moves into golf resorts.

It is believed that the resurgence is being led by the idea that resorts carry multiple revenue streams, as well as solid potential for future development. Golf offerings also tend to already feature well-built hotel properties, golf courses and a diverse guest profile.

Such is the uptake in transactions this year, major single asset transactions in golf resorts have increased by €10m (US$12.7m, £7.8m) – with American investors now seemingly keen on the European market.

“American investors are seeking high profile trophy assets on the back of the high level of home demand, a familiarity with the business and intense competition for assets signalling lower returns stateside,” said report author Harry Douglass, associate at HVS London.

“We have found the difference now is that today’s golfing clientele demand very exacting standards of golf course, facilities and food & beverage. To be successful resort owners need to invest in these, maintain them and continue investing to stay ahead of the competition.”

Despite a boom in the 1990s, golf resorts had reportedly been over-supplied in many locations in recent times, with a reduction in both corporate and leisure spend driving down RevPAR (revenue per available room) to make the sector’s predicament more problematic.

However, with hotel performance stabilising over the past 12 months, a number of resorts have changed hands as investors seek to try and benefit from a renascent industry.

For example, Ireland’s Doonbeg Lodge in County Clare and Turnberry in Scotland have been sold to the Trump Hotel Collection, while deals and redevelopments are also planned for further locations in Scotland, Spain and Italy.

Investment has also come from the Asian markets, with golf-hungry Chinese investors looking to benefit from the resurgence. Such an interest recently saw Chinese-led Reignwood purchase the UK’s famous Wentworth Golf Club, home of the PGA European Tour, from WG Acquisition for €170m (US$219m, £135m).

Elsewhere, a consortium of British investors has put its weight behind a proposed development of almost 500 acres on the outskirts of the Scottish capital of Edinburgh.