According to a recent investment review of hotel capital markets in the UK, the British hotel market experienced four billion pounds’ worth of investment last year. Property investment experts believe that this impressive volume of funding in 2021 is representative of increased investor optimism for the industry’s long-term prospects.
In spite of the disruptive and damaging impacts of COVID-19 on Britain’s hospitality sector, the continuing improvement of visibility and profitability in terms of future trading and the underlying drivers on greater demands for hotels has helped bolster both lender and investor attitudes towards the industry.
British investors often seek out expert financial advice in Chester, London and other major cities for guidance on sectors with suitable asset for their portfolios. Advisors like wealth managers assess levels of risk and return on investments that can adequately inform decision making.
After the uncertainty experienced in 2020, the UK government’s roadmap from lockdown helped foster an incremental rebound in hotel investment for 2021, as market confidence improved. In total, 2021 saw hotel transactions more than double, increasing by more than two billion compared to volumes recorded the year before. The recent report’s statistics showed that 52 per cent of the transaction volume reached completion in 2021’s fourth quarter, demonstrating more buoyant investor sentiments towards the sector, with increased trading performance over the summer and in autumn.
Additionally, the study found that hotel transaction activity showed a 58 per cent rise in single asset deals and a 46 percent rise in overall transaction volume in compared to pre-pandemic figures in 2019.
