New research from global property advisers Colliers International has found that the number of hotels being sold to international buyers has almost 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, whilst 24 percent were from continental Europe – a stark contrast to 2012 where only around 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.
Julian Troup, Director and Head of UK Hotels Agency at Colliers International said: “London is likely to benefit from the domino effect of a much more confident economy boosting current corporate activity. 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," Troup continued. “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. 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.
"In addition to the influx of international buyers, prepared in many cases to reflect a price based on potential, we have seen evidence of an influx in first-time buyers attracted by the lifestyle change supported by real estate value," Troup continued. "We have also seen an improvement in bank-funding support during 2013 strongly believe this trend will continue in 2014 and beyond.”
The IHIF, the International Hotel Investment Forum, 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.