There will be a greater number of transactions in the UK hotel market during 2012, with one expert stressing activity in this sector of the real estate industry is far from stagnant. Julian Troup, head of UK hotels at Colliers International, stressed the belief that there are currently lots of hotels for sale that are unable to find buyers is simply not true. He revealed his firm has sold almost 200 such properties in the past two years.
In the Colliers Hotel Snapshot for the six months to December 2011, Mr Troup predicted there will be an increasing number of buyers looking for this type of real estate investment over the next 12 months. He explained many potential purchasers have been waiting for quality businesses to come on to the market, which has contributed to the slowdown in transactional activity in the sector. Mr Troup added the type of buyers entering the market is changing. "Where real quality is on offer, we are seeing evidence of well-heeled buyers less concerned about the immediate return on investment and more focussed on the long-term benefits of anything that is reflected in 'fair value' still being achieved and, in certain cases, premium prices being achieved," he asserted.
Looking at specific trends, Colliers International cited the growth of the boutique hotel market in London, commenting on an HVS report that anticipated this sector will double in size by 2013. The main features that set this kind of hotel apart from mainstream chains are the introduction of guest-only areas, such as roof terraces and bars. There is certainly interest in this market, with the first-ever Boutique Hotel Summit due to go ahead in May this year. Earlier this month, the organisers unveiled an impressive list of speakers who are due to appear at the two-day event, including managing director of HVS London Russell Kett, vice-president of international development at Marriott International Tim Walton and head of communications at ABTA Victoria Bacon.
- Monday 27 February 2012