UK hotel deals down 76% during first half of 2016
The UK suffered one of the largest declines in the hotel investment market across Europe during the first half of the year, with year-on-year deals down by 76%, according to new data from property group CBRE.
Europe-wide, the total number of hotel transactions from January to June 2016 reached €6.8b (£5.8b), a decline of 41%.
However, CBRE said that fixed-income investment remained buoyant as investors continue to be attracted by the security of income, and highlighted that the UK leased hotel sector includes a number of operators with "highly regarded covenants and offering 25-year index-linked leases".
Recent deals to reflect this trend, explained CBRE, have included the sale of the Travelodge hotel in Liverpool Street, London for £42m, which "demonstrates the high and resilient demand for leased hotel assets".
"The hotel development pipeline expects that over £2b of fixed-income stock is due to enter the regional UK market in the next three years," concluded CBRE.
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