New research from global property advisers, Colliers International was revealed at this year's IHIF, the International Hotel Investment Conference, owned by Questex Media and taking place in Berlin from March 3-6. The data reveals that the number of hotels sold to international buyers has nearly tripled in twelve months.
Colliers reported that 19 percent of UK sales in 2013 were to international buyers, 60 percent of which were to buyers originating from China or the Far East, while 24 percent were from continental Europe – a contrast to 2012 where only approximately 7 percent of their UK sales were to international buyers.
Key trends for the hotels market in 2014, as identified by Colliers International, are driven by increasing demand from international buyers as well desire by a growing number of investors for a change in ‘lifestyle’ – an occurring pattern, which, according to Colliers’ Julian Troup, is not only underpinning, but in some cases, outweighing the going concern value.
“London is likely to benefit from the domino effect of a much more confident economy boosting current corporate activity," said Julian Troup, director and head of UK hotels agency at Colliers International. “Reports of a relaxation of the Chinese visa rules will also come as a welcome relief, bringing further advantages to the industry as a whole as a result of a strengthened tourist market. Swollen London prices have also provided the regions with some leverage – many buyers are now shifting their focus to properties outside the capital.
“However, regional-based hoteliers must be prepared to go against the grain and keep their nerve to push rate, despite rising demand and years of having to pursue buyers’ interest; those who do will reap the benefits in their bottom line," Troup said. “If you look at the transactions we completed in 2013, 86 percent of our transactional activity was for leasing sales and acquisitions with the remaining 14 percent on investment sales and acquisitions.”
The IHIF, the International Hotel Investment Conference, takes place in Berlin from March 3-6 and is owned by Questex Media. The three-day conference is the leading annual meeting place for the hospitality industry, and unites global industry professionals to help expand business worldwide.