Overseas investment has seen London’s hotel sector attract £2.6 billion ($3.4 billion) of investment in 2018, according to Savills.
The advisor says that the figure is 17 percent higher than that registered in 2017. It also accounts for 39 percent of the £6.6 billion ($8.7 billion) worth of hotel investment volumes made in the United Kingdom in 2018.
According to Savills, the majority of interest in the sector has come from international buyers who have capitalized on a weak pound. This resulted in overseas investors making up 68 percent of the transaction volumes in 2018.
There were 39 London deals in 2018, with key acquisitions including that of the Hilton London Kensington for £261.5 million ($344 million) by Cola Holdings and the sale of the Beaumont by Grosvenor to Barclay Bros. Single-asset transactions accounted for £1.64 billion ($2.16 billion) of the market, with an average deal size of £51 million ($67 million).
Gary Witham, director in the Savills hotels team, said the results show London remains one of the global leading hotel cities and is top of the list for investors looking to Europe as a whole.
“The strength of the tourist and corporate markets continues to drive successful trading even with increased cost pressure,” said Witham. “The safe haven of the U.K. legal system also attracts money from political turmoil from around the world.”
