North tops UK regions for hotel investment
Hotel investment volumes in the North of England reached £304m across 30 deals in the first half of 2017, higher than any other UK region except London.
According to real estate advisor Savills, transactions in the North accounted for 36% of the £844m combined total for all UK regions, followed by the South East (29%), South West (24%) and Scotland (11%).
Investment into the UK hotel market as a whole totalled around £2bn in H1 2017, says Savills, which predicts full year volumes will reach £5.1bn, a 28% increase on the £4bn total of 2016.
London remains the largest market, with investment volumes reaching £1.1bn in the first half of the year, accounting for 55% of all UK hotel transactions by value.
Savills notes particular appetite from overseas investors in both London and UK regional markets, with hotel acquisitions totalling £1.2bn in H1 2017, significantly higher than the £822m worth of hotel purchases secured by domestic investors.
The firm highlights The Hotel Collection’s £12.8m sale of The Imperial Hotel, Blackpool to Singapore-based Fragrance Group among the key hotel transactions in the North so far this year.
Savills was also involved in the sale of Jurys Inn Newcastle Gateshead and Ramada Plaza in Southport to UK investment houses, demonstrating confidence in the market from domestic investors as well as overseas.
Martin Rogers, head of UK hotel transactions at Savills, said: “The UK hotel market has had a strong start to the year as the sector remains resilient to the headwinds of the last six months. The favourable exchange rate has attracted overseas buyers that are looking for stable, long term income. The anticipation of a softer Brexit will provide further comfort, encouraging development and relieving pressure on staffing.”
