UK hotels still a strong pull for overseas investment

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.