UK Hotel Investment – Q4 2015

UK Hotel Investment
UK Hotel Investment

20 October 2015, words by Marie Hickey

The UK is on course for a new record year for hotel transaction volumes.

■ Year to date transaction volumes total £5.7 billion with year end expected to reach £8.5 billion, exceeding the previous 2006 peak.

■ Portfolio transactions will continue to dominate going into 2016 albeit to a lesser extent than seen previously.

■ This should not generate any concerns for activity levels as we expect to see further break-ups of portfolios going forward.

■ Downward pressure on yields continue, exacerbated by lack of good quality stock.

■ Availability constraints in London and renewed confidence in the regional hotel markets are attracting new overseas investors into the regions.

■ Institutional appetite for hotels shows no signs of waning, as they look to 'new' brands and concepts to fulfil demand.

 

 

 

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Key contacts

Marie Hickey

Marie Hickey

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 3320 8288

 

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