UK hotel investment for 2018

UK hotel investment for 2018

Investment in UK hotels during 2018 is expected to continue apace as London continues to be one of the strongest markets for hotel investment on the planet.

New figures from JLL have revealed that hotel investment in London reached £42.9 billion in 2017, placing London second in the Top 10 Global Markets report – New York was number one. In light of this, it would appear that investors have every confidence in the London market regarding the achievement of positive returns and good yields.

Hotels in UK regional cities also look very promising according to the Deloitte’s European Hotel Investment Survey 2017. Luton, for example, is predicted to be a hotel investment hotspot with new plans announced for the expansion of Luton Airport. In the long-term this will increase the capacity of the airport from 15 million passengers per year to 36 million by 2050. This upturn is bound to have an impact on hotel demand in Luton over the coming years.

Investor demand in Liverpool is also expected to accelerate during 2018. PWC have forecast that around 700 new rooms are expected to be made available to travellers over the next 12 months. Hotel rooms in oher regional cities in the UK are forecast to grow by more than 2% over the course of 2018.

On the whole, visitor numbers in the UK are expected to rise in 2018 and the demand for rooms will rise with it, strengthening the appetite for hotel investment as a result.