Investors are still interested in funding certain sectors of the hospitality industry, despite sluggish consumer confidence.
That's the view of property agent Colliers International in its latest Specialist Snapshot.
Among the findings in the snapshot were that appetite from investors within the hotel sector was still strong, as London hotels have recovered well from the recession. Although the provinces have recovered more slowly, well-financed budget chains continue to grab more market share as independent hotels dwindle.
Meanwhile, Colliers also indicated that the licensed and leisure sector was performing well in certain areas, particularly central London. Investors remain interested in the sector but are still cautious.
Dr Walter Boettcher, director, research and forecasting at Colliers International, said: "The specialist sector continues to feel the impact of cautionary discretionary spending as worries about the economy and Greece's status in the EU remains uncertain. Operators are beginning to see positive results as they focus on restructuring and their core businesses. There is also evidence that bank funding is available for operators with strong balance sheets and proven management. Boutique funds increased their interest in certain sectors for diversification purposes.
"The Q3 GDP figures came in slightly above expectations but are still weak in terms of overall growth.
"The eurozone debt crisis continues to stoke volatile markets, which is stimulating job security concerns as businesses are cautious in their investments. Government spending cuts continue to have an effect as the private sector hiring has yet to offset the public sector redundancies."
By Neil Gerrard
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