Region’s hotel market mirrors national investment trend

RISING levels of confidence and greater availability of debt is helping to boost transactional activity in Yorkshire’s hotel market.

Colliers International’s 2014 transactions are up 50% compared to the same period last year, reflecting the national trend of mounting investment in hotel assets.

The upsurge in hotel investment activity has been led by both investors and private buyers.

Peter Bean, director of hotels, Colliers Internationa, said: “Our Leeds-based hotels team has transacted 50% more hotel sales so far during 2014, compared with the same period in 2013.

“Although huge deals are occurring in London and the corporate market in general, significant investment is being made in smaller hotels in the regions, including Yorkshire and the North East. The majority of our hotel transactions in the region have been for properties priced between £500,000 and £1m.

“Hoteliers are reporting strong trade and we expect a lot more transactional activity during the rest of the year, as buyers recognise the tremendous hotel acquisition opportunities available in the region. Adding to this, banks are much more supportive than previously and we are experiencing an increase in the amount of interest from new to the industry hotel buyers, which is helping to bolster demand.”

Recent hotel sales in Yorkshire include Beck Hall in Malham and the Grade II-listed Yorkshire Dales property Falcon Manor Hotel.