Hotel development in the North West of England is being driven by banks’ increased willingness to lend, according to Colliers International speaking to North West Caterer.
Head of UK hotels at the real estate advisory firm, Julian Troup, said banks appeared to be "open for business" due to initiatives such as the government’s Funding for Lending Scheme incentivising banks and building societies to provide finance at competitive rates.
Between August 2012 and July 2013 the hotels agency team at Manchester sold 19 hotels throughout the North West, representing a 26.6% rise on the 15 hotels sold by the team in the region in the previous 12 months, and with a total value of £12.6m, according to the article.
“We have seen an increase in the level of demand from private and corporate buyers looking to invest in hotels in the North West,” said Troup.
“We are experiencing strong demand from buyers looking for properties in the hot spots of the Lake District, the Cotswolds, the North Yorkshire Dales and Moors, the New Forest and other national parks throughout the UK.”
He said lenders now recognised that growth will come from supporting quality buyers of hotels with a proven business plan.
The increasing number of hotel deals – reflected by the number of hotels sold by Colliers International in the past year rising by 28% to a total of 92 and with a combined value of more than £150m – also reflected the fact that owners of hotels realised that there was now a sellers’ market as opposed to more difficult conditions in which they could only sell for a reduced price.