London hotel investment set to hit record highs in Q1 2020

The Caterer has published the findings of Savills' hotels team on the volume of investment into London hotels.

According to their analysis, the first quarter of 2020 will see approximately £1.5bn in value transacted within the capital.

With indications that the pound will continue to slide with the adverse impact of a possible hard Brexit at the end of 2020, for overseas purchasers of hotels denominated in Sterling, they will look much cheaper.

Savills' data shows that hotel transactions for the UK as a whole reached £4.64bn in 2019 (which was down 42% year-on-year, but still 11% above the 10-year average). The volume of transactions across the country was also 47% lower year-on-year and 6% below the 10-year average. 

London retains its heavy gravitational pull for investment. Of the £4.64bn invested into UK hotel assets in 2019, it was split almost 50%:50% between London and the remainder of the UK.  Overseas investors accounted for 59% of market share for the UK as a whole. 

With the uptick in cost-led hotel insolvency, there will be many more hotel businesses which are operating on tight margins.  Howard Kennedy's specialist hotels team has a range of professionals who can help keep hospitality businesses healthy and turn them around before they reach the point of needing to restructure or enter a formal insolvency process. On that note, we are hosting the new Early Check-In Breakfast Seminar "Thinking Outside the Box" on maximising non-rooms revenue at our offices here at 1 London Bridge on 29 January 2020. Drop me a line to ed.john@howardkennedy.com if you would like to attend.