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Investment in UK Hotels Reaches £8.1 Billion in 2015
The report prepared by real estate advisor Savills unveils that in 2015 the UK featured high volume of hotel transactions - £8.1 billion. This is the highest result since the record year of 2006, when the total transaction volume reached £8.3 billion. The result of 2015 also marks amazing increase of 31.6% compared to 2014, when the volume reached only £6.1 billion.
London hotel market featured double growth last year. The total transaction volume estimated £3.6 billion in 2015 and only £1.8 billion in 2014. The metric was powered up by some high profile deals, including the sale of a share in the Maybourne portfolio (£1.37 billion). Other significant deals that were made last year are sale of the Holiday Inn Kensington for £345 million and the sale of the Bulgari Hotel in Knightsbridge for £270 million.
The regional hotel market remained strong last year. However, its share in total transaction volume went down and reached only 55.6%. In 2014, regional UK hotels transactions volume had a share of 71%. Most notable transactions in the region included the sale of the Hilton Newcastle Gateshead (£37 million) and the deal with the Cambridge City Hotel (£61.5 million). Transactions with hotel portfolios were the most notable ones, same as in 2014. The most significant deals include the sale of 22 Mercure branded hotels and the Malmaison portfolio (£1 billion and £363 million respectively).
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