UK Hotel Investment continues to grow significantly

UK Hotel Investment continues to grow significantly

A recent report by PwC has highlighted some of the key trends in the UK hotel investment market and the news is widely positive. It would appear that investors, on the whole, are largely unfazed by Brexit, with hotel deals increasing significantly last year. Here are some of the main findings from the report:

  • In the first half of 2018, hotel transactions totalled around £3.8 billion, an increase of more than 80% on the same time in 2017
  • Once the figures are finalised, the forecast for 2018 is £6.8 billion, a 40% increase on 2017
  • 2018 is the second highest level of investment in UK hotels since 2015, when a staggering £9.3 billion was transacted.
  • European, Middle Eastern and Asian investors have been the largest sources of investment over recent years.
  • PwC have ranked hotels as the second most popular niche asset class for investment.
  • There will be a steady increase in the supply of new hotel rooms throughout 2019 with areas outside of London such as Birmingham, Manchester and Liverpool seeing strong development activity.

The availability of cheaper finance and the low value of the pound is fuelling investment in the UK hotel sector and this looks set to continue.