North tops UK regions for hotel investment with £304 million total in H1 2017

20 July 2017

Hotel investment volumes in the North of England reached £304 million across 30 deals in the first half of 2017 according to international real estate advisor Savills, higher than any other UK region except London.  The firm reports that transactions in the North accounted for 36% of the £844 million 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 circa £2 billion in H1 2017, says Savills, which predicts full year volumes will reach £5.1 billion, a 28% increase on the £4 billion total of 2016.  London remains the largest market, with investment volumes reaching £1.1 billion in the first half of the year, accounting for 55% of all UK hotel transactions by value.  The firm notes particular appetite from overseas investors in both London and UK regional markets, with hotel acquisitions totalling £1.2 billion in H1 2017, significantly higher than the £822 million worth of hotel purchases secured by domestic investors.

Savills highlights The Hotel Collection’s £12.8 million sale of The Imperial Hotel, Blackpool to Singapore-based Fragrance Group among the key hotel transactions in the North so far this year.  The firm was also involved in the sale of Jurys Inn Newcastle Gateshead and Ramada Plaza Southport to UK investment houses, demonstrating confidence in the market from domestic investors as well as overseas.

Tom Cunningham, hotels director at Savills Manchester, comments: “For investors looking outside of London, the hotel market in the North is particularly attractive due to the prices and returns available.  The bigger towns and cities of the region offer a strong corporate and leisure trade, leading to high occupancy rates.  We expect trade to remain positive for the foreseeable future.”

Martin Rogers, head of UK hotel transactions at Savills, adds: “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.”

 
 

General Enquiries

Savills Margaret Street

 

Key Contacts

Tom Cunningham

Tom Cunningham

Director

Savills Manchester

+44 (0) 16 1244 7709