Insights

UK hotels still a strong pull for overseas investment

18/03/2019

Investment in the UK hotels market in 2018 was 87% above the long term average for overseas investment into the sector (£1.8 billion). The report from Savills will come as no surprise to economists who have long tracked the inverse correlation between overseas investment in UK real estate and the value of the £sterling.

The biggest growth came from the Middle East. One oddity is the origin of the European FDI investments: France (£859 million), Spain (£171 million) and Sweden (£157 million). Europe's largest economy - Germany - is left trailing some way behind at £42 million, possibly due to regulatory restrictions on funds ability to invest in managed (rather than leased) assets.

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When looking at the origin of investment between 2017 and 2018, the largest increase came from the Middle East which increased its activity from £23.5 million to £1.3 billion

https://www.savills.co.uk/insight-and-opinion/savills-news/278987/Overseas%20investment%20accounts%20for%20over%20half%20of%20investment%20into%20UK%20hotels%20in%202018
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