The well-known property consultancy Knight Frank, after a careful analysis shows that hotel investments in Great Britain in the first half of 2024 reached £3 billion supported by portfolio transactions.
Among the largest deals in the first half of the year were the purchase of 10 Radisson Edwardian Hotels by Starwood Capital Group for £800 million, the recent acquisition of 33 Village Hotels by Blackstone Real Estate for £850 million and the sale of the portfolio by Landsec's hotel portfolio for £400 million to Ares Management.
This £3 billion investment represents a significant increase compared to the same period in 2023 which had seen £990 million and is 10% below the pre-pandemic level in 2019.
It was mainly investors from the United States of America who drove the largest volume of transactions, accounting for 77% of the total investment activity in Great Britain, with the capital London being the main centre and focal point where the largest investments were concentrated with around 70% of the operations.
The Knight Frank Head of Agency said that the direction for the entire sector shows positive indices and the volume of portfolio transactions is a tangible proof that the sector remains attractive.
There is also expected to be an increase in the quality and number of hotels seeking to transact for the reason that hotel owners have extended their investment cycles and are now looking to implement outbound strategies.
When a particular asset meets all the investment criteria, some buyers are willing to pay the full price for these assets.
With a strong pipeline of hotels currently in legal affairs, the team of Knight Frank expects this momentum to continue and a cut in interest will further enhance optimism towards investment in the British hotel market.
On an additional note, Knight Frank Group said there is evidence that stakeholders are increasing pressure on owners to bring assets to market to deliverable levels for a more timely sale.
Link https://boutiquehotelnews.com/news/industry/uk-hotel-investment/
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