Colliers International believes long-term confidence in hospitality market will continue despite muted housing market.
The Cotswolds hospitality industry remains as robust as ever – despite a reported slowdown in the region’s housing market.
Peter Brunt, a director in the hotels team at global real estate advisor Colliers International, has responded to a report in the Financial Times which revealed a slowdown in house prices in the area off the back of the slump in property prices in the London market.
He said: “In contrast to the housing market, the pub and hotel market seems just as robust as ever. As long as vendors price sensibly, there continues to be a ready market of buyers looking for new properties in the Cotswolds.”
Colliers International brokered pub and hotels deals in the Cotswolds worth in excess of £13 million in the first half of this year.
“The region enjoys a high profile in London because of its reputation as a chic and trendy celebrity hot-spot and because of its gorgeous towns and villages and truly fabulous countryside. So it’s logical that the Cotswolds residential sector might feel some fallout from the cooling market in the capital.
“However, the region’s hospitality market proved highly resilient through the recession and was one of the first areas in the UK to emerge from the downturn.
“It is a micro market that has perennial high demand from operators because the trading opportunities are so strong. It is also attractive to first-time entrants and newcomers to the sector, particularly those from London and the South East who often know the region and find it accessible.
“There are lots of people with the money to spend on eating out and this impacts on pub and hotel values. Trading for pubs in the region continues to be strong with the number changing hands in the over £1 million price bracket growing, and some exceptional units even breaking the £2 million barrier.
“The Cotswolds is studded with pretty villages, the majority of which are easily accessible from the capital. Having a great village pub helps maintain property prices and a healthy residential market helps support the hotels and pubs.
“There is a strong case that people faced with diminishing returns from the London property market might wish to head up the A40 to look at what is available here.”