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The UK hotel sector performed well in 2017 with a weakened sterling, growth in staycations and improved infrastructure; investment levels exceeded those of 2016. Both JLL and Savills reported an increase in hotel transactions for 2017 with Savills forecasting that annual UK hotel investment volumes will reach £5.1b by the end of the year, 25% up on what they believed to have been the 2016 total of £4b.
Looking ahead to 2018 and the outlook is equally bright. CBRE’s 2018 Market Outlook expects the UK property sector to continue to perform solidly with the so-called “beds sector” which includes hotels, weathering any uncertainty well. This sentiment is echoed by Colliers International who view hotels as an “attractive and popular” investment opportunity despite Brexit uncertainty. A weaker sterling is expected to attract even more international buyers to UK hotels over the next 12 months, especially those located in the provinces, over the next 12 months.