This site uses web cookies · Read our Policy here
International: (+34) 952 198 657
Open navigation menu

Report Details Positive Outlook For UK Hotel Investment

First name: 


Last name: 


Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.

News by Category


United Kingdom  Hotel Investments  TRI Hospitality Consulting  UK Hotel Performance  BNP Paribas 

Report Details Positive Outlook For UK Hotel Investment

By - Monday 11 July 2011

The European hotel investment market looks set to continue its recovery in 2011 following a slump during the years of the credit crunch and the subsequent global economic downturn - with the UK segment particularly likely to see growth.

This is according to the most recent European Hotel Market Property Report from BNP Paribas, which says that while activity in the hotel investment sector "reached a floor" during 2009, last year saw the beginnings of a recovery that is expected to reach into 2011. This is thanks in part to a rebound in tourism levels and the revenue per available room (RevPAR) indicator.

Overall hotel investment in the top five European markets reached 6.6 billion EUR (5.9 billion GBP) in 2010, representing a 106 per cent rise over 2009. In the UK, investment levels accounted for almost half of this figure at 3.2 billion EUR, a 185 per cent increase compared with the previous year.

Interestingly, although international arrivals began to stabilise in the UK during the second half of 2010, the eight per cent leap in the country's RevPAR and a 4.8 per cent year-on-year jump in occupancy rates may have been due to "British outbound travellers turning increasingly inbound". The capital in particular seems to have enjoyed the lion's share of this growth, having a knock-on effect on investment trends as a result - London accounted for 65 per cent of the UK's hotel investment volume last year.

"The recovery observed in 2010 should go on in 2011 with a number of themes expected: operators' sale and leaseback (asset-light) strategy will continue, more distressed assets are likely to come on to the market, the bid-ask price gap will reduce and hotel operating performances will follow the upward trend established in 2010," BNP Paribas says.

This outlook may be further supported by recent statistics from TRI Hospitality Consulting revealing annual increases in UK hotel chain RevPAR for both the month of May and 2011 so far. May's RevPAR rose to 72.62 per cent from 67.53 per cent in the same month in 2010, while the figure for the year to date was 62.72 per cent, compared with 59.64 per cent for the equivalent period last year.

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here



*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.

«« Back to IPIN Live

Follow IPIN Global

Latest Content

Recent Comments

Powered by Disqus