Hotel transactions have risen 28 per cent in the last year as the market shakes off the effects of the Olympic ‘summer that never was’.
But potential owners have been warned not to miss out as properties – and prices – begin to move forward once again.
Colliers International hotels director Simon Wells said: “Viewing rates have soared and buyers are finding that properties are much less likely to sit on the market and that they need to get cracking.
“We are seeing strong demand from private and corporate buyers looking to invest in quality assets and locations across the South West.
He said: “Enquiries have been strong all year but we always see a peak at this time of year as people return from their holidays full of enthusiasm. This summer’s hot weather has created a real buzz in the hotels’ market.”
Colliers brokered two key sales in the South West at either end of the hotel spectrum – and there are more on the way proving the sudden surge in demand is no summer flash in the pan.
“What’s significant here is that The Astor Hotel on Plymouth Hoe and Lynton Cottage in Lynton are such completely different propositions.”
Simon is also marketing the North Cliff Hotel just along the cliffs in Lynton.
The elegant and substantial property is in prime trading location with outstanding sea views and is highly profitable returning £63,435 on turnover of £137,555 with plenty of scope to increase.
On the market at £795,000, freehold, The North Cliff is just a few minutes’ walk from the centre of Lynton. All 14 letting bedrooms enjoy a coastal view. Simon said: “This is stunning country where Exmoor National Park meets the magnificent rugged coastline.”
Also on Simon Wells’ books is the 17th Century grade II listed Lifton Hall Hotel in nearby Lifton, Devon.
“Right on the Edge of Dartmoor on the Devon/Cornwall border this a beautifully presented ten bedroom hotel and there’s an 11th due to come on line.
“Lifton Hall comes with the additional benefit of a one bedroom barn conversion for owners and a three-bedroom letting cottage, both are held on separate deeds from the hotel. With offers invited around the £850,000 mark it represents very good value.”
Turnover is £351,649 net of VAT with adjusted net profit of around £90,000 so there is a very good mix of lifestyle and profit.
“The cottage has only been let since June this year so there is growth here too. With interest growing across the hospitality sector potential buyers will need to be quick to grab a bargain in a re-invigorated market.”
For details, contact Simon Wells, hotels director, Colliers International, Bristol on 0117 917 2000.