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Savills advised on 43% of total hotel investment volumes in the South West during 2022, which represents a 30.4% increase compared to the previous year.
Domestic buyers also represented approximately 66% of transaction volumes, with the remaining 34% comprising international buyers in 2022.
According to Savills, hotel transaction volumes in that region totalled around £166.2m across 23 transactions. Real estate advisors also noted that the first quarter through to the third quarter were the “strongest”, with 93% of total South West being completed over this period.
Key transactions in the market include Doubletree Hilton Bath which was sold to Pandox for approximately £40m and Forest Park Hotel in the New Forest sold to The Coaching Inn Group for an undisclosed figure. The Coaching Inn Group also purchased the Moorland Hotel in Dartmoor through Savills for an undisclosed figure.
James Greenslade, director in the hotel capital markets team at Savills Exeter, said: “While we had a great start to the year, the final quarter of 2022 saw transaction volumes stall with investors pausing decision making due to uncertainty caused by the ‘mini budget’ and market sentiment softening.
“However, we are seeing a number of transactions carry into 2023 and expect these to complete, which is a testament to investor sentiment holding firm.”
He added: “We expect market activity to increase as we move through 2023 and anticipate year-end volumes to reach similar levels in 2023 driven by both domestic and overseas demand.”
