The SOUTH East is a goldmine for investment in the hotel industry, new figures show.
Latest figurers from commercial property specialist Savills show that investment into the South East and home counties hotel market reached a total of £980 million across 46 transactions in 2017, 60 per cent above the levels recorded in 2016.
The region also accounted for 18 per cent of the total UK volume of £5.4 billion.
Characterised by individual sales predominantly in the £1m to £10m bracket, the research also noted that average transaction size in the region was £15 million on average.
Eight transactions took place for assets between £10m and £20m and nine on assets over £20m.
The average price per key for the south-east and home counties reached £135,702 in 2017, in comparison to the UK average of £145,303.
The firm notes key deals in the area such as the sales of Hilton London Heathrow Airport, The Grand Harbour Hotel in Southampton and Hunton Park hotel in Hertfordshire.
Savills added the region also benefited from a popular coastline with £66m of the region’s transactions occurring on the coast, predominantly in Brighton, Portsmouth and Southampton.
The majority of deals occurred in the second half of the year with £740m of transactions compared between July and December in comparison to £240m for January to June.
Georgie Liggins, surveyor in the hotel’s team at Savills, said: “The south-east and home counties hotel market has had a strong year driven by the region’s close proximity to both London and the coast.
“We expect the coastal markets to do particularly well in 2018 as tourist numbers and therefore spend rises with the increasing popularity of staycations and the regeneration of several key seaside resorts.”
The research comes after the new £25m five star Harbour Hotel opens its doors at Ocean Village in October introducing five-star luxury to the marina and city with a striking super-yacht inspired design with 85 bedrooms costing from £185 per night.
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Source : DailyEcho