Economic uncertainty holding up investment in British hotels

Tuesday, January 10, 2023

Property consultant Knight Frank said total hotel transactions were worth £3b of hotel revenue in 2022, with annual investment levels 30 per cent below the five-year average.

Rob Stapleton, director, Head of UK Hotel Capital Markets at Savills said: '2022 can be summarised as a tale of two halves where volumes in the first half were up 16.9% YoY and 61% lower in the second half of the year YoY, as rising debt costs and a weakening economic outlook caused activity to slow.

Knight Frank said the pandemic was a speed-saver in structural change with more than 19.000 bedrooms permanently closing over the past two years.