€3.4b of hotel transactions in 2022

Approximately £3 billion (€3.4 billion/$3.6 billion) of hotel transactions took place in 2022, according to Knight Frank, with the total annual investment volume 30 percent below the five-year average.

With momentum from fourth quarter 2021 continuing into 2022, U.K. hotel investment saw a robust first half of the year, accounting for 68 percent (£2.1 billion/€2.4 billion/$2.5 billion) of total annual investment. However, the volatility that arose from the war in Ukraine, combined with global economic uncertainty and the domestic political turmoil, had a negative impact on hotel transactional activity throughout 2022.

The surge in energy costs, increasing payroll and other operational costs, higher interest rates resulting in the rising cost of debt and the growing threat of an economic downturn have contributed to reduced levels of investment in the latter half of 2022, with many deals having failed to complete amid increased economic uncertainty.

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