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Dominvs Group sells three UK hotels off guide price of £12m

The Discount Holidays © Holiday Inn Darlington, Discount Holidays © Holiday Inn Dumfries and the Mercure Sheffield Parkway were all sold in an off-market deal with joint agents, global investors JLL and property specialists Christie + Co. The group comprises 229 guest bedrooms, with the Sheffield and Darlington properties sold freehold, and Dumfries as a long leasehold. The move forms part of Dominvs wider strategy to grow their established portfolio and development pipeline, the group said, while Christie + Co suggested the sale was evidence of the continuing appeal of the UK regional hotel market to overseas investors, thanks in part to a fall in the Pound Sterling.

Gavin Wright, director of JLL s hotels and hospitality group, said: This is a significant deal post the EU referendum result. All three hotels benefit from being operated by well-known brands and offer stable and steady income. Jeremy Jones, head of hotels brokerage at Christie & Co, said: This portfolio sale follows on from a number of recent high profile sales processes.

It is further evidence of the appetite from both domestic and overseas buyers for good quality regional UK hotel assets.

Melia reports RevPAR slump at UK hotels

The Spanish group which owns brands including ME and Innside saw net profits rise to ‘ 45m ( 38m) up to June, a 123 per cent increase year-on-year. It comes despite a slump in growth in the UK, which the company blamed on the EU referendum and safety fears following terrorist attacks in Europe. However, Melia was optimistic that profits would improve in the second half of the year.

The company said in a statement: In the UK visibility regarding the impact of Brexit is still reduced. Although there have been a small number of cancellations of groups and business trips directly related to the financial sector, at the same time the market is beginning to see the positive impact of the depreciation of the pound on incoming tourism to the UK. It marks a stark contrast to the same period last year, when Melia reported a very positive UK performance with RevPAR growth exceeding 15 per cent at its ME London hotel and over five per cent at the Melia White House in the capital.

The group which celebrates its 60th anniversary this year currently operates three UK hotels in London and one in Manchester.1

In 2015 it announced plans to open two further properties in Glasgow and Birmingham2 under its premium Innside brand.

Melia operates more than 350 hotels in 40 countries.

References

  1. ^ one in Manchester. (www.bighospitality.co.uk)
  2. ^ plans to open two further properties in Glasgow and Birmingham (www.bighospitality.co.uk)

Post-Brexit to boost UK hotel room bookings by 30 per cent

New research released today from travel wholesaler Tourico Holidays shows that it is anticipating a significant boost in bookings thanks to Brexit for the rest of the year, in addition to the almost 250,000 UK room nights it has sold so far this year, including a 12 per cent year-on-year boost from the United States. This is thanks to the referendum s prompting of a weak pound and a subsequent good exchange rate into Sterling for overseas currencies, the data suggests. While Tourico Holidays states that its bookings from China and Germany account for just four and six per cent of inbound business respectively, both have reportedly increased their average daily reservations by over 100 per cent since the Brexit vote.

Bookings to secondary markets , such as Manchester, have also increased by a significant 60 per cent, with business coming not just from inbound visitors, but also UK visitors who would like to take a break without exchanging currency on the currently weak rate. The figures come soon after industry predictions1 that the hotel industry would be one of the first to benefit from Brexit. Mark Redmond, vice president of the European Region for Tourico Holidays, said: Early booking trends since Brexit show a falling Pound is actually strengthening the UK travel market.

Not only will international travellers see it as an opportunity to finally book a trip to what was formerly considered a high-priced destination, we anticipate British travellers will also travel more within the UK. The company currently has partnerships with over 1,000 UK hotels, including Park Plaza Hotels, Corus Hotel Hyde Park London, and Hilton Hotel Group including Double Tree hotels and the Conrad St. James.

References

  1. ^ industry predictions (www.bighospitality.co.uk)