Hotels, bars and restaurants across the Cotswolds will be boosted by the recent record increase in residential property prices, according to sector specialist Colliers International.
The Cotswolds were recently identified as the UK’s leading property hotspot after a report from the Office for National Statistics showed that average prices had risen by 16.2 per cent in the 12 months to July to £384,745. Nationally, average house process rose by 5.1 per cent.
Hotels Director Peter Brunt
said: “The latest figures from the Office for National Statistics will come as no surprise to people who live and work in the Cotswolds.
“With homes averaging £384,745 there is clearly a knock on effect on the Bed & Breakfast market in particular where value is underpinned by the residential value.
“Our pubs and hotels’ value is trade-driven, but the wealth of the area is indicated by the rising house prices. This gives rise to lots of people with the money to spend on eating out, and this impacts on value.”
Colliers International was involved in brokering 11 sales totalling over £11m in the Cotswolds in the last 12 months including The Dial House Hotel in Bourton-on-the-Water; the Swan Inn at Ascott-under-Wychwood; the Inn for All Seasons near Burford; the Horse and Groom at Upper Oddington and Number Four at Stow.
Forecasters at Colliers International have predicted that the UK regional hotels market will be boosted by a combination of low interest rates and cheap sterling, solid UK trading, acquisitive domestic buyers and an increasing flow of international capital.
Peter Brunt added: “The Cotswolds in particular are benefitting from extraordinary national and international factors – but the backdrop to the current boom is our heritage and location.
“The Cotswolds have become a favourite destination for celebrities which gives further gloss to an area with outstanding natural advantages in terms of its history and geography.
“The Cotswolds are ‘classic England’ as far as visitors are concerned, and with pretty villages and easy accessibility from the capital it is always a considerable draw.
“Operators are already feeling the increased demand from overseas visitors and this is one of the reasons fuelling a strong demand for hospitality businesses in the region. The number of people holidaying here is being further boosted by foreign visitors attracted by being able to obtain more for their dollars, Euros and yen.”