The changes brought about by COVID-19 have extended the reasons for buying a hotel to a diverse range of investors, according to Colliers International
The trend for UK ‘staycation’ breaks has resulted in a spike in trade in hotels located in popular tourist destinations, according to global real estate advisor Colliers International.
Julian Troup, head of UK Hotels Agency at the global real estate advisor, said changes in tourism brought about by COVID-19 were bringing new opportunities to the UK hotels industry in the form of a diverse range of prospective purchasers.
“A significant spike in trade in hotels located in areas popular for ‘staycations’ has been observed by our teams throughout the UK, in most popular tourist destinations throughout the UK,” he said.
“All the signs are that this trend is set to continue, and that hotels in locations which benefit from ‘staycation’ holidays will attract a healthy level of interest in the months to come.
“These hotels offer buyers a great place to live, work and make profit. They should attract more funding support and, based on the impressive trading figures and forecasts we have seen, in most cases will provide buyers with a solid return on investment.”
Mr Troup said that while lockdown had inevitably impacted upon the market, Colliers International had recently seen an increase in general enquiries, with an over 200% uplift in formal viewings in July when compared with the previous month.
Mr Troup noted that prior to the outbreak of COVID-19, the market had been heating up as overseas investors moved in to take advantage of the weakness of sterling.
“At Colliers International, where we typically have over 200 UK hotels for sale at any one time, we had been transacting on between 80 and 100 hotels and hospitality businesses each year and our pipeline was solid on the back of a strong Q1,” he said.