Investment into hotels in the south west of the UK reached £205 million across 22 deals in the first half of 2017, according to Savills, as a beneficial exchange rate and the development potential at many assets attracts investors.
The firm noted there is over £209 million of stock on the open market suggesting a strong second half of the year. Demand has been driven by overseas investors as the favourable exchange rate boosts spending activity. There has also been an increase in demand for hotels with development potential as the south west remains popular with visitors, particularly as the staycations market grows.
James Greenslade, associate in the hotels team at Savills, comments: “The south west is a popular holiday destination for visitors from home and abroad and as such the hotel market has been robust in the first half of the year. As well as strong domestic demand we have experienced a particularly diverse range of overseas capital from locations including South Africa, Singapore and India.”
Martin Rogers, head of UK hotel transactions at Savills, adds: “The UK hotel market has had a strong start to the year as the sector remains resilient to the headwinds of the last six months. The anticipation of a softer Brexit will provide further comfort, encouraging development and relieving pressure on staffing.”