Hotel market remains bouyant in the South West
The South West hotel market remains buoyant thanks to the resurgence of cash buyers – according to a new report.
Specialist business property adviser, Christie & Co said it has seen a resurgence of cash buyers over the past twelve months.
During 2023, the hotel team facilitated the sale of over 25 properties throughout the region, totalling an impressive £51.1m in aggregate value.
Key deals included the sale of the Royal Hotel in Weymouth which sold to Leisureplex Hotel Group; and the iconic Grand Atlantic Hotel in Weston-super-Mare which was acquired by leading Singaporean-based hospitality investor, Fragrance Group.
This market activity was predominantly driven by cash buyers, although funded buyers are beginning to return to the market, in anticipation of falling interest rates in 2024.
The combination of dramatic coastlines and sunny coastal resorts, picturesque countryside, charming villages, historic sites and a milder climate make the South West a highly popular holiday destination and an attractive area for investors looking to enter or expand in the hospitality industry.
Buyers continue to show strong interest for good quality opportunities throughout the region, whether in popular coastal tourist destinations, urban centres, or quaint town and village locations. Additionally, country houses remain highly sought-after in the market.
Ed Bellfield, regional director, said: “2024 is off to a strong start for the hotel team, with two significant sales, namely the 111-bedroom Torbay Hotel in Torquay, which sold to Caledonian Leisure and Hartham Park in Wiltshire, which sold to an independent buyer.
“The first two months of 2024 have shown year on year increases in viewing numbers and offers received which indicates buyer’s growing confidence in the hotel sector. A fall in base rate would certainly help buyers needing funding, however we are still seeing a significant number of cash buyers attracted by quality opportunities in the market. All signs remain positive, and we are expecting to see continued buoyancy in the hotel market throughout 2024.”
