Foreign buyers are trawling the West hotel market for new business opportunities according to hospitality sector experts at Colliers International.Hotels directorSimon Wells said overseas investors and returning ex-pats were particularly active, targeting the region’s tourist hotspots:
“The hotel industry in the UK has always been diverse, not just in the businesses themselves but also their owners. The UK is regarded as a safe haven and while we have always had enquiries from all over the world, interest seems particularly keen at the moment.”
Recent enquiries have come from Thailand and India, and:
“I sold a hotel in Bath to Italians earlier this year and I have another Italian doing his due diligence on a hotel in the south west.
“Some buyers are returning UK nationals returning from stints in Brazil, the Middle East and even Australia – areas where the free trade that we take for granted is more restrictive and that doesn’t always sit well with an entrepreneur.”
Pushing beyond the M25
“These buyers are pushing beyond the M25 in greater numbers in order to find a return on their investment. Tourism in the UK has been a key driver in the UK’s growth in the last two years, outperforming most other sectors.”
Finance available
He went on: “Revenue per available room is up in London but the regions are doing very well too. Banks are returning to the sector after years of closed doors and returns are attractive as the assets – the hotels themselves – are being bought off recession adjusted levels, so investment makes sense.”
“Not only do new owners get the opportunity to operate a business in one of the country’s top visitor destinations – they also get to live there. This is fast becoming a major factor as property in tourist hotspots like Bath is particularly thin on the ground at the moment.”
Henry House Guest House
One star attraction on Simon Wells’ books is the Henry House Guest House (pictured top), which occupies a prominent spot near the city centre.
The highly desirable townhouse B&B has seven letting bedrooms along with a spacious apartment for owner’s with its own private courtyard garden. It is on the market for a cool £1.3mfreehold.
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 15,800 professionals operating out of more than 485 offices in 63 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.
In the UK, Colliers International is one the top real estate advisory organisations, employing over 700 people in 12 full service offices across the UK and Ireland. For the latest UK news from Colliers International, visit colliers.com/uk/news or follow on Twitter: @Colliers_UK