Search
The Caterer

Savills predicts regional hotel transactions to top £2b in 2014

22 January 2014 by
Savills predicts regional hotel transactions to top £2b in 2014

Regional hotel transactions could reach £2b in 2014, according to Savills.

According to the estate agent's UK hotel monitor, transactions for regional hotels hit £1.7b in 2013, a rise of 138%. It predicts market volumes to rise further this year.

Savills pointed to a significant increase in activity by smaller private groups and high-net-worth individuals in 2013, including the acquisition of Menzies Hotels by Topland for £80m. It said these kinds of transactions would continue in 2014, with the market further boosted by increased overseas investment.

Savills' head of UK regional hotels Martin Rogers said: "The UK regional hotel investment market had a tremendous year in 2013, reporting the highest level of liquidity since 2007. We expect that we will continue to see strong volumes in 2014; however, we believe that single-asset transactions will dominate, as opposed to the large portfolio sales we saw last year."

He added that the regional hotel market accounted for 43% of the volume of UK hotel transactions in 2013.

"This is an improvement over the past few years, although still significantly down from the 82% it accounted for before the downturn," Rogers said.

"The increased interest we are seeing demonstrates investors' confidence and more realistic pricing by vendors and this will help to boost the percentage in 2014."

Administrator puts two country house hotels up for sale >>

Former Buddha Bar on London Embankment sold for £3.9m >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.