Hotel investment volumes in the North of England reached circa £482 million in the first half of 2018 according to international real estate advisor Savills, around 59% higher than the £304 million total in the same period last year.
The firm reports that portfolio sales accounted for approximately £320 million of H118 transactions while individual hotel sales accounted for £162 million. The total spend was dominated by UK investors (67%), including the portfolio purchase of four Ibis Styles hotels from Carillion by Starboard Hotels. This was followed by investors based in Israel (17%), Canada (9%), France (4%), the US (2%) and South Africa (1%).
In terms of individual hotel transactions, Savills highlights Lothbury Investment Management’s £44 million acquisition of Malmaison in York, Accor’s £20 million purchase of Novotel in Liverpool city centre and Rockspring Property Investment Managers’ £15 million acquisition of Holiday Inn in York among the North’s key deals of H118.
Tom Cunningham, hotels director at Savills Manchester, comments: “Hotels in the North of England remain attractive to both UK-based and global investors looking outside of London thanks to the prices and returns available. Occupancy rates are also robust across the region, particularly in the larger towns and cities, and investment volumes look set to remain strong throughout the remainder of this year and beyond.”