UK hotel deals down 76% during first half of 2016

The UK suffered one of the largest declines in the hotel investment market across Europe during the first half of the year, with year-on-year deals down by 76%, according to new data from property group CBRE. Europe-wide, the total number of hotel transactions from January to June 2016 reached ‘ 6.8b ( 5.8b), a decline of 41%. However, CBRE said that fixed-income investment remained buoyant as investors continue to be attracted by the security of income, and highlighted that the UK leased hotel sector includes a number of operators with highly regarded covenants and offering 25-year index-linked leases .

Recent deals to reflect this trend, explained CBRE, have included the sale of the Travelodge hotel in Liverpool Street, London for 42m, which demonstrates the high and resilient demand for leased hotel assets .

The hotel development pipeline expects that over 2b of fixed-income stock is due to enter the regional UK market in the next three years, concluded CBRE.

UK hotel investment market hampered by possible Brexit >>

UK leads way in European hotel investment market for record 2015 >>1

UK hotel transactions up 172% in 2015 >>
2

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References

  1. ^ UK leads way in European hotel investment market for record 2015 >> (www.thecaterer.com)
  2. ^ UK hotel transactions up 172% in 2015 >> (www.thecaterer.com)
  3. ^ Are you looking for a new role?

    See all the current hospitality vacancies available with The Caterer Jobs >> (jobs.thecaterer.com)

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