Viewpoint - 11/05/2017

Hotel market insight: May 2017

We have seen a robust market recovery in the hotel sector during the past three years, with increased activity across both transactional and valuation activity across most regions in the UK.

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Hotel performance across the country is varied, but many regional operators are experiencing consecutive RevPAR growth that is leading to robust “P&L” performance.   

Strong demand 

Purchaser appetite for good quality assets throughout the regional markets is beginning to outstrip supply in the current market.  Smart buyers continue to seek profitable hotels that have benefited from steady investment, and well presented businesses that can demonstrate increased occupancy and average room rates are also in demand.   This aligns with lenders requirements for experienced operators and well-funded investors who are supported by experienced management teams.  Consequently, many experienced operators have taken advantage of strong demand to secure sales at premiums not seen since the peak of the market in 2007.   

Who is buying?

Buyers are primarily domestic UK purchasers, although we are seeing increasing demand from overseas buyers and high net worth individuals.  The LSH Hotels team has a comprehensive database of national and international buyers actively seeking opportunities throughout the UK.   

If you are considering your future plans and would like to talk to one of our hotels team, please contact Simon Stevens on 020 7198 2155. 

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