Dare we jinx it, but following the spell of sunshine we’ve been enjoying across the UK, it looks like the British summer is well underway, and it won’t just be the local population that are making the most of it.
VisitBritain expects to see 41.7 million international visitors travel to the UK in 2018, spending circa £26.9 billion. Top destinations will surely be the leading cities of Edinburgh, Manchester and Birmingham. But the university towns of Oxford and Cambridge will undoubtedly remain popular too, alongside the golden Bath-Bicester Village-London triangle, with many claiming to have ‘done the UK’ once they’ve traversed it.
Yet clearly the UK has plenty more to offer in both destinations and stays. With temperatures recently soaring to the high 20°Cs, British beaches have been packed. Brighton is a popular destination for visitors, enjoying its seaside amenities and close proximity to London, with its hotel market being supported by the town’s strong conference and convention offering. According to data from STR the town remains the third best performing hotel market after London and Edinburgh with a revenue per available room (RevPAR) of £72.50 in 2017.
Other traditional seaside towns such as Blackpool and Eastbourne are also increasing in popularity, with investment volumes reaching £500 million and £340 million respectively.
Windsor, too, has long been a tourist destination and achieves RevPAR levels of £70.85. The Royal Wedding in May attracted an estimated 110,000 visitors to the town, and we expect to see visitor numbers increase over the next few years as tourists clamour to see where Prince Harry and Meghan Markle tied the knot.
Away from the traditional destinations, historic coaching inns provide fascinating glimpses into an often scandalous past, while ample, picturesque grounds at the UK's country house hotels are perfecting for playing Lord and Lady of the Manor.
Hotels offering high-quality roast dinners in traditional settings can draw tourists from city centres to ‘destination’ dining options. Hotel afternoon teas also bring in strong food and beverage revenues, while in the right setting, guests will return for spa days, weddings and weekends away.
Investors get caught up in the tradition too, with lifestyle purchasers striving to become a part of history. Owning a hotel in which kings and queens once courted or great playwrights wrote their famous scripts can provide a great sense of pride and admiration for British heritage. Such properties often present excellent investments too, allowing the owner the opportunity to put their stamp on the property and associated business, while in receipt of a solid revenue when managed efficiently.
We expect more investors to reap the rewards of investing in lifestyle businesses, and international investors who have already stepped foot in the UK to widen their portfolios to capture some of that British magic.
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