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Property investors confident in UK hotels, with Q3 spend reaching £935m

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Henderson Park has exchanged contracts on the acquisition of a portfolio of 12 predominantly freehold Hilton branded hotels across the UK and Ireland (press image from PR at FTI  on henderson deal)
Henderson Park has exchanged contracts on the acquisition of a portfolio of 12 predominantly freehold Hilton branded hotels across the UK and Ireland (press image from PR at FTI on henderson deal)

Confidence in the hotels investment market looks to be improving in the UK, with buyers spending £935 million on sites in the last three months.

That spend was more than treble what was recorded in the third quarter a year earlier and is also 20.6% higher than the same period pre-pandemic, in 2019.

Property agent Savills said year to date investment stands at £2.7 billion, which is down on 2019, but it forecasts the full-year figure will reach around £4 billion. The 15-year average is £4.2 billion.

It added that London has been a popular destination for investors. Tim Stoyle, head of UK hotels at Savills, said: “Following what was a slow start to the year, we have experienced strong positive momentum for hotel investments.”

He added: “Investors continue to remain positive as the staycation market boosts regional performance and the return of international travellers provides a welcome boost to our city centre hotels.”

Recently inked deals include property firm Henderson Park exchanging contracts on the acquisition of a portfolio of 12 predominantly freehold Hilton-branded hotels in the UK and Ireland.

Henderson Park’s Nick Weber this week said the transaction is “timed to capitalise on the potential for a near-term return to travel as well as a wider post-pandemic recovery over the years to come”. The sale is set to close later this year.

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