Following a bumper fourth quarter, where £1.42 billion changed hands, total 2021 UK hotel investment volumes reached £4.14 billion, according to Savills.
This is an 84.3% increase on 2020 volume and just shy of the 15-year average of £4.22 billion.
“The hotel sector has had a resilient year with strong momentum in the final quarter showcasing the appetite for UK hotel assets. While there remains operational challenges in the short-term, investors continue to be positive on the long-term outlook of the sector and we anticipate another strong year in 2022 for the UK hotel investment market,” Tim Stoyle, head of UK hotels at Savills, said. The company acted two largest single asset transactions claiming almost 20% of market share by way of total investment volume.
The regional UK hotel market experienced a considerable increase in investment in 2021, reaching £2.04 billion, more than 570% of 2020 volumes. Private equity capital, both domestic and international, commanded the regional market, accounting for 62.9% of hotel investment, reaching £1.28 billion.