Hotel transactions in the UK declined steeply during the first nine months of 2008 compared with the same period a year ago, according to a leading property agent.
Knight Frank's third-quarter research on single and portfolio hotel transactions of more than 10 bedrooms shows that transactions in the UK declined by 69% to just over £1.5b compared to £4.8b for the same period in 2007.
Portfolio transactions decreased by 86% to £0.54b (2007: £3.93b) although single hotel transaction sales remained steady at £0.98b, in-line with 2007's £0.95b of sales.
Head of hotels at Knight Frank Dominic Mayes said: "Portfolio transactions throughout the first three quarters of 2008 were few and far between due to the current financial and economic downturn.
"The most prominent transaction to date this year in the UK was the sale in August of a 50% stake in the Jurys Inn chain by Quinlan Private to the Oman Investment Fund for a reported £157.8m. This transaction demonstrates that the budget sector continues to attract interest from investors, particularly from the Middle East."
Notable transactions outside London during the first three quarters of 2008 included the 158 bedroom Marriott Victoria & Albert Hotel in Manchester for a reported £25 million; the 133 bedroom Four Seasons Hotel in Hampshire for a reported £60 million, and the 168 bedroom Patio Hotel in Aberdeen for £35 million.
By Gemma Sharkey
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