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Hotels located at British seasides are attracting increased investment as the weakened pound continues to stimulate growth in ‘staycations’.
Figures from Property Frontiers have shown the devaluing currency, the rise in ‘staycations’ and the record number of inbound visits have incentivised investors to put more money into UK properties.
UK seaside towns are proving more popular according to VisitBritain figures, as Scarborough enjoyed a 4.56% rise in tourism in 2016 and a 15.52% rise in total visitor expenditure.
Additionally, Woolacombe in North Devon was voted Britain’s Best Beach by TripAdvisor for 2015 and 2016.
The Harland Hotel, which sits on the Scarborough’s south bay is currently offering rooms for investment from £60,000, with 10% net income for the next decade and Woolacombe’s Atlantic Bay Hotel is seeing interest from international and domestic investors.
VisitBritain predicts that the UK tourism sector will grow by 3.8% per year between now and 2025.
Estates agents Savills report that investment in UK hotels has already reached £2bn in the first half of 2017. If the company’s projections are realised, investment for the year will hit £5.bn, an increase of 28% over 2016.
A survey conducted by CBRE earlier this year found that the UK had the most appealing market in Europe when it came to hotel investment.
Ray Withers, CEO of Property Frontiers, said: “UK hotel rooms are hot property right now when it comes to investments that offer impressive returns.
“They outshine buy-to-let in several ways – there’s no stamp duty, no buy-to-let tax issues and a comparatively low entry point. For investors from overseas, there’s also the ongoing favourable exchange rate, with the pound not yet fully recovering from the UK’s decision to leave the EU.”
