As reported by Property Magazine, Savills has forecast that annual UK hotel investment volumes will reach £5.1 billion by the end of 2017, up 25% on the 2016 total of £4 billion.
By the end of Q3 2017, transaction volumes had reached £3.5 billion for the year to date, up 6.1% on the same period last year, with more activity forecast for Q4.
The activity of overseas buyers in the UK regions has been particularly noteworthy accounting for 38% of total hotel transaction volumes in the regions for 2017, a significant increase from 7.3% in 2016.
This has included Starwood Capital’s purchase of the Holiday Inn Manchester City Centre for £54.5 million and the Singaporean-based CDL buying the Lowry Hotel Manchester for £52.5 million.
Brexit has been a major driver of this trend. With the weaker pound contributing to a significant increase in visitors from abroad, UK hotels remain an attractive proposition for overseas investors.T
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