Sales of British hotels forecast to reach six-year high | 07 November 2013
Sales of British hotels have been tipped to reach their highest level since 2007.
New figures released by Savills have suggested that £2.4 billion worth of sales have already been completed this year, which is two-and-a-half times what was recorded this time last year. At this rate, the sales volume will pass £3 billion for the first time since 2007.
In an interview with costar.co.uk, Savills’ head of hotel investment, Robert Seabrook, attempted to explain why the hotels market has had such a good year.
He said: “A growing consensus on pricing has seen more sales complete this year. Expectations are that year end volumes will hit £3bn, their highest level since 2007.
“Additionally, realistic pricing has also increased the speed at which transactions are completing, with accurately priced assets now selling within three to four months as opposed to 10 to 12 months in 2012.”
According to pie-mag.com, Savills suggested that sales figures would have been even higher if the supply of hotels keeps up with the “insatiable appetite” of potential investors.
London hotels represented the majority of transactions, with a high proportion of investors hailing from the United States. Savills tipped the growth of the hotel market to continue in 2014.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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