Article

Home > About Us > News & Events > Article

Substantial growth witnessed in UK hotel market

news-image

The hotel investment market in the UK enjoyed an incredibly positive Q3 this year, according to a new report from Jones Lang LaSalle (JLL).

The commercial real estate experts recently released its latest quarterly figures on hotel investment in the UK, which showed signs of substantial growth over the past year - with North America leading the way in terms of activity. In fact, investment in this sector in Q3 2014 rose by a staggering 278 per cent compared to the same period last year, JLL noted.

In monetary terms, investment volumes in Q3 this year reached a total of AUD$3.1 billion. North American investors were responsible for the majority (58 per cent) of this total volume - compared to just 7 per cent last year.

As expected, London is the hotspot responsible for much of the activity. The region's hotel market grew by 22 per cent from Q3 2013, according to JLL, with a substantial proportion of investment originating from Asia and the Middle East.

With the UK attracting plenty of attention from global investors in a number of property markets, it's a great time to be getting your investment appraisals in order if you're looking to enter this market.

Jon Hubbard, managing director of JLL's Hotels & Hospitality, explained that the investment surge in UK hotels is a reflection of overseas' investors confidence in the market's recovery and growth.

"Investors from North America, China and other parts of the Far East are currently the principal sources of international investment, with investors eyeing cities such as Aberdeen, Edinburgh and Manchester," he added.

"The significant increase in investment from North America in part reflects a reallocation of funds as a result of US real estate becoming more expensive and we predict that this trend will continue."

Date Published: 22 Oct 2014
Category: General NewsNews

Want a test drive?

All products are available to try for 14 days

Speak to a Live Agent now