Following the easing of lockdown restrictions in July, and before these were re-imposed in November, regional hotel operational performance in key UK staycation markets was “strong”, according to Savills.
The international real estate advisor’s latest research shows that in line with this “resilient trading performance”, the UK regional transaction market has experienced a similar resurgence in demand, evidenced by the fact that since July, over 82% of deals completed were outside of London, with the South West accounting for 38% of all regional deals.
Savills revealed it has been involved in over £42m worth of hotel sales in the South West in 2020 and has achieved 73.5% of market share by transaction volume between July and November 2020.
Of the hotel assets launched by the firm in the region since July 2020, almost two thirds (63%) of this is now under offer, exchanged or sold.
James Greenslade, associate director in the hotel investment team at Savills, said: “Following the easing of the first lockdown, hotel operators experienced a boom in domestic travel, with many tourist hotspots being in great demand.
“Many holidaymakers have continued to be drawn in by the appeal of staycations as a safer and more reliable alternative to international travel during these uncertain times.”
He added: “With robust operational performance for well-located regional assets forecast, the South West hotels market has continued to attract healthy appetite from investors, with competitive marketing processes since July delivering multiple offers above guide price.”
Tom Cunningham, head of Regional Hotels, said: “We anticipate investor appetite for good quality regional hotel assets to continue into 2021 and whilst available stock levels are low, competition to secure these assets is likely to remain high amongst buyers.”