The UK hotel investment market is set for a sales volume of 拢3 bn (鈧�3.6 bn) in 2013, the highest level in six years, according to property adviser Savills.
The UK hotel investment market is set for a sales volume of 拢3 bn (鈧�3.6 bn) in 2013, the highest level in six years, according to property adviser Savills.
Investment in the period to early November reached 拢2.4 bn - 2.5 times the volume at the same point in 2012 with at least 拢600 mln expected to complete by the year-end.
Robert Seabrook, head of hotel investment at Savills, said: 'A growing consensus on pricing has seen more sales complete this year and expectations are that year-end volumes will hit 拢3 bn, their highest level since 2007. Additionally, realistic pricing has also increased the speed at which transactions are completing, with accurately priced assets now selling within three to four months as opposed to 10 to 12 months in 2012.'
The firm highlights the increasing number of US investors expanding into the UK through the acquisition of portfolios, such as Starwood Capital with its acquisition of the Principal Hayley Group and KSL's acquisition of Malmaison Hotel du Vin.
UK pension funds are also competing fiercely for index-linked hotel leases, particularly when the minimum lease length is 20 years and over.
