Colliers sees ‘distressed’ hotel sales nearly double

A QUARTER of UK hotel sales handled by agent Colliers International last year were due to insolvency, with the remainder involving new entrants or expansion by existing hoteliers.

In the North West, Colliers said 31% of the 26 sales it handled involved “distressed” assets that were caught up in either administration or receivership.

This was nearly double the previous year when the figure was 17%.

Neil Thomson, associate director for hotels at Colliers, said: “The figure for distressed transactions in 2012 represents the fact that we have successfully secured more instructions from banks and administrators as opposed to reflecting any marked rise in the number of such sales in the North West region.”

Colliers said 78% of sales in the North West were to first time buyers, up from 72%. Nationally, the figure was far lower at 34%.

Julian Troup, head of Colliers’ hotels arm, said: “Despite these challenging times, we’re encouraged by the increase in the number of new buyers who saw the opportunity to invest in the hotel market after taking a long-term view on an improvement in real estate and recognising the immediacy of trading gains under their ownership. 
 
“Although there continue to be sellers that have to dispose of properties for financial or health reasons, this was surpassed by those who made the decision to sell for reasons such as retirement, or a change of occupation.”