Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
Investor demand for South West hotels “remains high” as transactions in the region hit in excess of £58m year to date (Jan 2021 – Nov 2021), according to Savills.
Across the South West, the international real estate advisor currently has over £25m of hotel assets under offer which are anticipated to complete in early 2022, continuing the “positive momentum” into the New Year.
James Greenslade, director in the hotel capital markets team at Savills Exeter, said it comes as the South West has an “enduring appeal” as a holiday destination but has more recently seen “exceptional levels of demand”. Coastal and country hotels, especially in Devon and Cornwall have been “particularly popular” with both investors and consumers.
He said: “Strong demand from investors echoes the resilient operational performance of South West hotels. However, while demand has been strong there is a lack of stock in the market.
“This, combined with the resilience of longer term demand drivers and the weight of capital seeking to deploy in the sector, means that pricing levels will be supported going forward and competition for good quality hotels will remain high in 2022.”
He added: “The constrained debt markets in 2021 meant that investors have been predominantly cash buyers with demand coming from a variety of investors including domestic purchasers, private equity, overseas buyers and High Net Worth individuals.
“We are seeing signs of the debt markets opening up to the hotel sector which is expected to increase competition for assets further.”
