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UK hotel investment reaches eight-year high at £6.1b

07 January 2015 by
UK hotel investment reaches eight-year high at £6.1b

Hotel transactions in the UK grew 55% year-on-year to £6.1b in 2014, which is the highest level since 2006.

International real estate company Savills said that renewed confidence from investors in the regions had been a key driver of the growth, with 71% of deals taking place outside of London.

However, the hotels market in the capital remains strong, particularly in value terms, with 60% of single asset transactions taking place in London last year.

Martin Rogers, hotels director at Savills, said: "Investor demand returned with gusto in 2014 and we expect it to remain strong in the year ahead. In London, the demand and supply imbalance will put downward pressure on yields while regional activity is likely to be fuelled by the break-up of portfolios purchased in recent months."

Time right for hotel acquisitions, says HVS >>

2015: The year ahead >>

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