Investment into the UK hotel market reached £2bn in the first half of 2017 according to international real estate advisor Savills.
The real estate firm predicts that levels will reach £5.1bn for the full year, up 28% on total 2016 volumes of £4bn.
Savills notes the hotel investment market in H1 was driven by London and individual sales as overseas investors continue to demonstrate considerable appetite for the sector. The capital remains the largest market, accounting for 55% of transactions by value (£1.1bn). Individual sales accounted for 92% of transactions by value (£1.834bn).
A number of high profile portfolios are expected to come to the market in the second half of the year. Overseas investors account for £1.2 billion in the first half of the year in comparison to the £822m transacted by domestic investors.
Martin Rogers, head of UK hotel transactions at Savills, comments: “The UK hotel market has had a strong start to the year as the sector remains resilient to the headwinds of the last six months. The favourable exchange rate has attracted overseas buyers that are looking for stable, long term income. The anticipation of a softer Brexit will provide further comfort, encouraging development and relieving pressure on staffing.”