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No sleep for hotel investors
Transaction volume in the UK hotel market last year reached £6.1 billion (€8.0 billion), according to Savills, the highest annual total since 2006. Knight Frank (using a different methodology) sets the number at £4.3 billion (€5.7 billion), an increase of 90 percent on the year before, and still the highest total in eight years.
In particular, Knight Frank expects pricing in the Greater London area to outpace the rest of the country.
Shaun Roy, head of the specialist sector team at Knight Frank, commented in a statement: “London assets continue to be highly-prized, providing wealth preservation opportunities for a diverse range of investors; however, we will continue to see more opportunistic investors take on more regional fixed-lease hotels and hotels let on management contracts in 2015.”
Meanwhile, German hotel investment had a record year in 2014. According to Colliers International, German hotel transaction volume was up 82 percent year-over-year,