17 January 2019
The hotel industry loves statistics and we do certainly get bombarded with them. However, our friends over at Savills recently reported the following interesting stats which we thought were worth sharing:
- UK hotel transaction volumes reached a total of £6.6bn in 2018, up by 25% on 2017;
- £3.5bn of the above figure was attributable to hotel portfolio transactions (53% of the total value);
- Overseas investors increased their activity in the UK, accounting for 54% of the total £6.6bn value (and up 22.5% on 2017;
- The top three most active countries that invested in UK hotels in 2018 were Israel (£1.1bn); France (£860m) and Canada (£420m);
- London accounted for 39% (£2.6bn) of the total £6.6bn value, and as a percentage, largely in line for the previous two years.
Conclusions: at a macroeconomic level, tourism continues to grow in the UK and the rest of Europe; there is growing appetite from institutional investors for alternative assets (such as hotels) and an abundance of overseas capital continues to pour into the UK despite Brexit uncertainty.