Publication

UK Hotel Investment – Q1 2018

13 March 2018

The fundamentals supporting operational demand over the longer term, particularly in the face of Brexit, means the investor appetite for UK hotels is set to remain robust throughout 2018

Summary

■ Transaction volumes reached £5.4 billion in 2017, 32% up on 2016 levels.

■ Overseas buyers were major drivers of transactional activity in 2017, with a shift in focus to regional markets supported by pricing and availability constraints in London.

■ Brexit bounce may be waning but outlook for operational performance remains positive for 2018. However, stock growth in London may generate some headwinds this year.

■ Maintaining and enhancing margins will be a key focus for operators in 2018 with some looking to generate revenues from under-utilised space.

■ Investor appetite to remain robust in 2018 with interest by overseas and institutional buyers continuing. The regions are to remain particularly attractive due to its higher returns.

Commercial Investment