The Scottish hotel sector has had almost the same amount of investment in the first half of 2017 as it did in the whole of 2016, according to global property experts Savills.
The 2016 figure of £119.7m is certain to be eclipsed, with the 2017 transaction total already sitting at £118m.
Edinburgh remains far and away the biggest hot spot, with 75% of the money in question spent in the Capital. Savills pinpoint the influence of overseas investment, £46m having been spent in six deals alone. High profile recent acquisitions include Chinese group Creation Gem taking on the Isle of Eriska Hotel and Spa in Oban, Singaporean 7 Hospitality buying the DoubleTree by Hilton Dundee and the Bonham Hotel in Edinburgh’s sale to a US investment group.
Steven Fyfe, Associate in the Hotels Team at Savills Scotland, remarked, “Hotels in UK regional cities are in high demand with overseas investors – fuelled by the relative weakness of Sterling, resulting in advantageous exchange rates, and the sharpness of yields in prime markets, providing owners with the opportunity to sell very comfortably just now.
“Edinburgh remains the most sought-after hotel market in the UK outside of London where occupiers and investors are keen to increase their presence by virtue of size, various brands and new concepts.”