Confidence in the hotel investment market in the UK appears to be improving, with buyers spending £935 million on sites over the past three months.
This spending was more than triple what was recorded in the third quarter a year ago and is up 20.6% in 2019 compared to the same period pre-pandemic.
Property agent Savills said year-on-year investment is £2.7 billion, down from 2019, but estimates the full-year figure to be around £4 billion. The 15-year average is £4.2 billion.
It added that London has been a popular destination for investors. Tim Stoyle, Head of UK Hotels at Savills, said: “After a slow start to the year, we have experienced strong positive momentum for hotel investment.”
He added: “Investors remain positive as regional exposure to the accommodations market boosts and the return of international travelers provides a welcome boost to our city center hotels.”
Recent deals include property firm Henderson Park, exchanging contracts on the acquisition of a portfolio of 12 predominantly freehold Hilton-branded hotels in the UK and Ireland.
Henderson Park’s Nick Weber this week said the transaction is “a time to capitalize on the near-term return to travel as well as the potential to recover from the widespread pandemic in years to come”. The sale is due to close at the end of this year.