Hotel investment opportunities

Hotel investment

[Credit: The Douglas Hotel]

There’s a large volume of loans maturing this year which is expected to result in an increase of transactions in 2024. According to Savills’ investor sentiment survey, investment volumes for European hotels are expected to “significantly surpass” 2023’s numbers, with more than €1 billion of UK hotel assets having already transacted this year.
 
Up in Scotland, CBRE is marketing two properties relevant to our BHN readers. Boutique property The Douglas Hotel (Isle or Arran) is up for sale at £2.9 million, as well as an office conversion to luxury hotel (Edinburgh). Repurposing commercial real estate into hospitality has been the preferred route to market for many operators as office and retail values decline and construction and labour costs for new builds soar. For owners and investors looking to quickly grow portfolios, transacting on existing hotels will become even more viable as interest rates remain elevated prompting sales, and the seller-buyer expectation narrows.
 
Savills’ survey respondents expect to deploy around €10 billion over the next three years into hospitality, in particular targeting lifestyle hotels, mid-market hotels and serviced apartments. I’m sure this figure will be reassuring to readers of BHN and Serviced Apartment News – do subscribe to our sister publication SAN here if you’re interested in the latest headlines from across the extended-stay industry.  

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