Colliers International - Hotels has experienced a 28 per cent uplift in UK hotel transactional activity in the 12 month period to July 2013 when compared to the same period of the previous year.  Julian Troup, Head of Colliers International Hotels Agency says:  “We have seen an uplift in the level of demand from private and corporate buyers looking to invest in UK hotels.”
  
“There are reasons for real optimism in terms of the transactional activity taking place in the UK hotel market - contrary to the belief of some -  we, at Colliers International, are remaining busy and productive, in the 12 months to July 2013 we have sold or acquired 91 hotels and hospitality businesses with a combined value of in excess of £150,000,000.”

In terms of corporate interest there is a clear movement from 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 continues:  “We are currently marketing the sale of Oakley Court Hotel, Windsor where we have been inundated with domestic and international interest and it is clear from this 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 releasing them to look more seriously at buying a hotel or guest house - we are experiencing strong demand from buyers looking in the Hot Spots of the Lake District, the Cotswolds, the North Yorkshire Dales and Moors, New Forest and other National Parks throughout the UK.”

In recent years, Colliers has witnessed more and more hoteliers concentrating on generating more ‘profitable’ business; coupled with improved cost control.  As a consequence even those hotels that are ‘flat lining’ in terms of revenue are now showing an increase in profit margins, which is helping to underpin values and prices that are currently being achieved. 

Additionally in recent months, the staycation trend and the hot summer has improved investor confidence as we’ve seen an increasing the level of enquiries for leisure based UK hotels.