Colliers International has completed on the sale of 16 hotels across the UK since the EU referendum vote in June 2016, demonstrating that the UK hotels sector remains an attractive proposition for domestic and international buyers.
Since the referendum vote, Colliers International’s UK Hotels Agency team has completed 16 deals throughout the UK and across a range of hospitality types, from larger scale hotels to a host of smaller B&B and guest houses. In addition, the interest has not been isolated to one particular area of the UK, with the sales taking place across England, Scotland and Wales.
Most recently, the team advised on the sale of the 79-bedroom Best Western Calcot Hotel in Reading, which was sold to SGS Hotels for an undisclosed sum.
The team also recently advised on the sale of the Leopold Hotel, a four-star boutique hotel in Sheffield city centre on behalf of Deloitte LLP to an international management company for a substantial excess of the £4m guide price.
According to a recent report from Begbies Traynor, the ongoing weakening of the sterling against the euro is expected to add an extra £245 to the cost of holidaying in Europe for the average British family, making staycations to UK destinations even more appealing.
Julian Troup, head of UK hotels agency for Colliers International: “The improved trade expected off the back of the weakened pound should result in stronger profit margins for operators, which in turn paves the way for property and business values to increase. This is an attractive proposition, not just for domestic buyers but for international investors too; and as such, now is a great time to enter the UK hotel market.
“In recent weeks we’ve seen Hong Kong-listed Magnificent Real Estate acquire the Travelodge London Kings Cross Royal Scot Hotel from Henderson Global Investors for £70m and Premier Inn has announced it is to refocus its strategy away from India and South East Asia, preferring to concentrate growth on the UK, Germany and Middle East markets, where there’s the potential to grow scale.
Paul Barrasford, a director at Colliers International, who advised on the sale of the Best Western Calcot Hotel in Reading earlier this month added: “This market activity demonstrates that long established investors and operators of UK hotels remain very active in their pursuit for acquisitions. Whilst some macro-economic reporting has been pessimistic, the micro position is often very positive as hotels and their surrounding businesses and regions continue as normal. From a regional hotels transactional perspective, there has been no market shock.”