Hotel sales are set to rise over the next 12 months, according to estate agent Colliers International.
Julian Troup, newly appointed as head of Colliers International's hotel agency team, is predicting that there will be a rise in the number of hotel buyers in the market, as well as a change in the type of purchaser looking to move into the hotel sector.
While the recent market has seen a fall in the number of completed hotel transactions, Troup believes that in the first half of 2012 we will see a marked increase.
"One of the issues for the reduction in transactional activity has been the desire of many quality buyers to hold out to buy a quality business," explained Troup.
"As a result, many of the poorer quality hotel opportunities have sold mainly as a consequence of competitive pricing. Where obvious quality is on offer we are seeing evidence of well-heeled buyers less concerned about the immediate level of return on the investment.
"We are also seeing some evidence of new-to-the-trade buyers approaching us, in part as a consequence of a rise in unemployment feeding prospective buyers through to the hotel industry. In line with the events of the early 1990s recession, professionals in the service industry who suffered in terms of employment chose the hotel trade as a viable means of alternative employment where they had control over their own destiny. An increase of ex-pats entering the sector is also being seen."
While Colliers International has experienced a drop this year from the 100-plus hotels it sold during 2010, the company believes the figures will soon return to last year's figures.
By Janet Harmer
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Published by: The Caterer