According to research by Colliers International Hotels, just 26 per cent of hotel sales in 2012 were distressed transactions.
Buyer and seller sentiment was analysed as part of the research, the results of which challenged the widely held belief that most hotels were sold by owners in a position of distress. The research indicated that the vast majority of deals involved new entrants to the market or expansion by existing hoteliers.
Head of Colliers International Hotels Julian Troup said: “Despite these extremely challenging times, we’re encouraged by the increase in the number of new buyers who saw the opportunity to invest in the hotel market after taking a long-term view on an improvement in real estate and recognising the immediacy of trading gains under their ownership.”
Colliers’ research also revealed that an encouraging 34 per cent of buyers were new entrants to the hotel market.
Troup concluded: “Both buyer and seller sentiment was similar to the previous year although the banks, who are major influencers in our market, showed signs of accelerating the sales process while their colleagues in credit, although remaining cautious, did take a more realistic view on lending, particularly to proven operators and better quality businesses.”
Image: The Watermill Hotel in Paisley, which is seeking a buyer after falling into administration.