Total investment in the UK hotel market increased by 47% to £1.89 bn (€2.61 bn) in the first quarter of 2015 compared with the year-earlier period, according to research by Savills.
Total investment in the UK hotel market increased by 47% to £1.89 bn (€2.61 bn) in the first quarter of 2015 compared with the year-earlier period, according to research by Savills.
The Q1 figure puts the sector on course to beat last year’s annual total of €6.1 bn, itself an eight-year high, Savills said.
The firm noted there was a shift in transaction activity away from London into the regions, with the capital city accounting for 34% of all business in Q1 2015 compared to 47% a year earlier.
Portfolio acquisitions and disposals increased substantially, representing two-thirds of the total against 28% in Q1 2014.
The biggest portfolio transaction in the first three months of 2015 was Lone Star´s £676 mln purchase of the Jury’s Inn chain, while key regional transactions included Ability Group’s £20 mln acquisition of the Park Inn by Radisson in Manchester and Marathon’s £27.5 mln purchase of the DoubleTree by Hilton in Chester.