Over £442m was invested into hotels in the south west region, according to the latest figures from Savills.
The region has accounted for 13% of the total investment into UK hotels which reached £3.2bn in the first half of 2018. UK investors accounted for the lion’s share of investment volumes, accounting for £289m (65.38%). This was followed by Israeli investors which accounted for £84.62m (19.12%) and US investors accounting for £52.5m (11.86%). Portfolio deals were the main component of the region’s investment volumes, accounting for £295.8m (66.8%).
The majority of individual deals were in the £1-£11m bracket, with some of the key single asset transactions being the sale of the Abbey Hotel in Bath for £16 million and the sale of Burgh Island, both being acquired by UK-based investors. The region has seen further investment with The Pig announcing a new south west property at Harlyn in Cornwall.
James Greenslade, associate in the hotels team at Savills Exeter, commented, “The south west hotel market continues to be popular with investors, and in particular domestic money as the asset class provides long term security. The region’s established hotel market and reputation as a holiday destination makes it a safe bet for a range of investors.”
(source: Savills, image: pixabay)