According to the report, transaction values to date in 2019 have been led by portfolio deals, including the £1bn sale of four Grange hotels to Queensgate, and other portfolio transactions still in the market which are expected to conclude in H2 2019.
Additionally, investor appetite in the sector also remained remained strong in the UK, with a range of capital sources chasing a limited supply, particularly in and around London and major UK cities.
The company said London assets remain “particularly attractive” as the city has performed better than expected from 2018, with a 1.7% increase in occupancy, 1.9% in ADR, and 3.6% in RevPAR, March YTD.
Christie and Co predicted at the beginning of the year that both London and the regions would continue to perform well in 2019, albeit at a subdued rate of growth. However, while London has exceeded this expectation, the regions have in fact shown negative growth so far in 2019 at -2.9% predominantly driven by a reduction of -2.3% in ADR.
This follows strong performances in recent years in regional cities, such as Belfast, Plymouth, Newcastle and Cardiff and increased supply into most major cities.
Barrie Williams, managing director – hospitality at Christie and Co, said: “Whilst the market is undoubtedly more difficult, there remains widespread investor interest and debt availability for the right hotels in desirable locations across the UK.”
Carine Bonnejean, managing director – hospitality consultancy at Christie and Co, added: “Despite some clear uncertainty, our UK Hotels Consultancy team has remained very busy with development appraisals, due diligence, repositioning and branding assessments across London and the regions and we anticipate a strong second half in terms of activity.”