New data from Colliers International has revealed that the number of completed hotel transactions rose by 28 per cent in the last 12 months, suggesting that private investors are eager to acquire quality assets in the sector.
The report reveals that investors and private equity-backed buyers have been shifting their gaze from London towards cheaper regional hotels, with many buyers looking to purchase a smaller property that they can manage themselves.
Julian Troup, head of Colliers International Hotels - Agency Team, said: “There is also more evidence of private buyers being able to sell their house, releasing them to look more seriously at buying a hotel or guest house - we are experiencing strong demand from buyers looking in the Hot Spots of the Lake District, the Cotswolds, the North Yorkshire Dales and Moors, New Forest and other National Parks throughout the UK.”
Mr Troup went on to suggest that hotel managers have been improving cost control over the past few years, making more attractive to potential buyers. Furthermore, the continuing popularity of the UK as a tourist destination - from both British and international holidaymakers - will have undoubtedly had a huge impact on the sector.
Significant positive growth has been recorded in Wales and the Cotswolds. Colliers International hotels director Peter Brunt added that the market is so strong that supply is dwindling. This may pose a problem in the future as with short supply comes soaring property values which, in turn, can deter future investors from buying.