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Investors have pumped more than £1.7bn into the UK hotel market in the third quarter of 2014, with North American investors leading the charge, according to real estate specialist JLL.
JLL’s latest quarterly figures on London and regional UK hotel investment trends shows that there has been a 278% increase in investment into the sector compared to the same period last year.
Just over £1bn of the amount invested in Q3, equating to 58% of overall UK investment volume, came from North American investors, a 51% uplift from the same period last year when investment from North America stood at just 7%.
Jon Hubbard, managing director in JLL’s hotel and hospitality group, said: “Whilst London remains a highly attractive market for global investors, the UK’s regions have become a key focus for international investors, reflecting a confidence in the continued recovery and growth of the sector over the coming years.
“Investors from North America, China and other parts of the Far East are currently the principal sources of international investment, with investors eyeing cities such as Aberdeen, Edinburgh and Manchester. The significant increase in investment from North America in part reflects a reallocation of funds as a result of US real estate becoming more expensive and we predict that this trend will continue.”
Investment in London’s hotel market is up 22% compared to Q3 last year, with some £387m invested in the capital.
Significant deals include the sale of Edinburgh’s Roxburghe Hotel to US based investment management firm, Starwood Capital, which is currently the largest post-recession single asset deal in Edinburgh.
