A return of confidence, an improved economy, plus an interest from US investors has helped increase average hotel property prices by 17.2% during 2014.
A more buoyant hotel transaction market is good news for both operators and consumers, according to Chris Day, managing director of Christie + Co, which has announced the new figures in its Business Outlook 2015.
“New money coming into hotels from private equity companies, which have been behind many of the major transactions, is resulting in increased capital expenditure spending and improvements being carried out to properties which have been starved of investment for six to seven years,” he explained.
“It means better quality hotels for the people working in them and for guests.”
According to the property adviser Outlook 2015 hotel and debt owners have capitalised on a “hunger for hotels” which resulted in Christie having its busiest week in this section, selling 42 hotels totalling £500 million in just one week alone during 2014.
Christies added that companies were bidding for hotels at between 10 and 15% higher than guide prices during 2014 and this looks set to continue for 2015.