An estimated £46m worth of hotel sales in the South West of England could be completed by the end of the year, according to property advisor, Christie + Co.
This comes after Matthew Smith, director at Christie + Co, reported a record breaking year in the transactional hotel market in the South West with significant interest from London and overseas buyers looking to take advantage of what is “arguably one of the best regions for the hotel sector outside of the capital.”
Smith said: “Good quality hotels which have seen ongoing investment in the asset are now benefiting from the regions’ increasing occupancy and improving room rate trends following on from the economic recovery”.
“We are experiencing a record breaking year in completed hotel transactions across Devon, Cornwall and Somerset. To date in 2014, we have completed transactions in excess of £35 million of hotel assets with a further £11m in the pipeline due to complete in the next few months — a considerable increase compared to this time last year.”
Christie + Co have reportedly becoming increasingly busy in the lead-up to Christmas. Over the past two weeks it has completed the sale of the boutique Cornwall Hotel Spa and Estate in St Austell, for a guide price of £7.5m, along with the sale of Brixham’s Churston Court Hotel in excess of the £1m guide price.
Smith said: “For the current year to date, we have witnessed hotel Occupancy increase by up to 4%; Average Room Rates up as much as 7% and RevPar now 12% ahead based on 2013 statistics.”