Colliers buoyed by hotel business
An increase in hotel deals suggests a rising level of interest in the leisure sector among private and corporate buyers, according to Colliers International.
Colliers' Manchester office sold 19 hotels throughout the North West in the 12 months to 31 July – an increase of 26% on the 15 sold in the previous year.
That mirrors the company's activity nationally with the hotels agency team at Colliers International selling or acquiring a total of 91 hotels and hospitality businesses throughout the whole of the UK.
The combined value of the deals was in excess of £150m, representing a 28% increase in deal activity on the previous year.
Julian Troup, the Manchester-based head of hotels agency at Colliers International, said: "We have seen an increase in the level of demand from private and corporate buyers looking to invest in hotels in the North West and the whole of the UK.
"There are reasons for real optimism in terms of the transactional activity taking place in the UK hotel market.
"In terms of corporate interest there is a clear movement from private and institutional investors and private equity backed buyers keener to consider the more attractive pricing of larger provincial hotels when compared with full prices that continue to be obtained for hotels in and around London."
Troup says the sale of Etrop Grange Hotel, a grade 2-listed Georgian mansion near Manchester Airport, showed the demand from investors for larger, high quality assets in the provinces.
Colliers International sold Etrop Grange to Squire Hotels in 2013 for a sum close to the guide price of £4.95m on behalf of Highcross Strategic Advisors.
Troup added: "It is clear from this transaction and from other instructions that quality continues to drive the market and there remains a significant demand for quality assets and locations.
"There is also more evidence of private buyers being able to sell their house to allow them to seriously consider acquiring a hotel or guest house.
"We are experiencing strong demand from buyers looking for properties in the hot spots of the Lake District, the Cotswolds, the North Yorkshire Dales and Moors, the New Forest and other national parks throughout the UK."
