Savills: Investment in UK hotel market up 55 per cent year on year

Total transaction volumes for the hotel property market in the UK were up 55 per cent year on year in 2014, according to property expert Savills.

The real estate advisor says 71 per cent of transactions were based outside London.

Overall, total transaction volumes were worth £6.1 billion – the largest figure that has been seen this side of 2006.

"Investor demand returned with gusto in 2014 and we expect it to remain strong in the year ahead.  In London, the demand and supply imbalance will put downward pressure on yields while regional activity is likely to be fuelled by the break up of portfolios purchased in recent months," said Savills hotels director Martin Rogers.

Savills says that the market in London was strong last year – especially when it came to value. London was home to 60 per cent of single asset transaction volumes.

More than half – 53 per cent – of the UK based hotel investment during last year involved more than one asset. These portfolio deals were worth a total of £3.2 billion.

Among the portfolio deals of 2014 were Kew Green buying 21 Holiday Inn venues from LRG.

Holiday Inn is part of the brand portfolio of the international InterContinental Hotels Group (IHG) – along with several other well known hotel brands.

There are 4,700 hotels internationally that IHG owns, manages, leases or franchises – which works out at 697,000 rooms that it oversees.

Meanwhile, the IHG pipeline for development features some 1,200 forthcoming venues.

Berkeley Scott is a specialist recruitment agency providing hospitality employment solutions.