Domestic and overseas demand sees south west hotel sales rise 30%in 2022

Hotel transaction volumes in the south west rose over 30% in 2022 compared to the previous year, fuelled by demand from both domestic and overseas buyer demand.

Volumes totalled c.£166.2m across 23 transactions last year, representing a 30.4% increase compared to 2021, according to Savills.

Domestic buyers represented approximately 66% of transaction volumes with the remaining 34% comprising international buyers in 2022.

The international real estate advisor notes that Q1-Q3 were the strongest quarters with 93% of total South West transactions completing over this period.

Key transactions in the market includes Doubletree Hilton Bath which was sold to Pandox for approximately £40 million, Forest Park Hotel in New Forest sold by Savills to The Coaching Inn Group for an undisclosed figure who also purchased the Moorland Hotel in Dartmoor through Savills for an undisclosed figure.

Savills advised on 43% of total hotel investment volumes in the South West during 2022.

James Greenslade, director in the hotel capital markets team at Savills Exeter, says: “While we had a great start to the year, the final quarter of 2022 saw transaction volumes stall with investors pausing decision making due to uncertainty caused by the ‘mini budget’ and market sentiment softening.

However, we are seeing a number of transactions carry into 2023 and expect these to complete, which is a testament to investor sentiment holding firm. We expect market activity to increase as we move through 2023 and anticipate year-end volumes to reach similar levels in 2023 driven by both domestic and overseas demand.”

The post Domestic and overseas demand sees south west hotel sales rise 30%in 2022 appeared first on Boutique Hotelier.

* This article was originally published here