The hotel industry in 2016 will see significant market opportunities through the break-up of portfolios and increasing sale and leaseback activity, despite disruptive issues taking place in the industry, according to research from Knight Frank published by Hospitality & Catering News.
Investment volume in hotel property accounted for 8.29% of total UK commercial real estate volume at £5.89 billion in 2015, as investors sought long-term defensive asset classes, with key deals including Brocket Hall in Hertfordshire. The increase in investment volume in hotels has more than doubled since 2013 from £2.21 billion, and represents the highest figure to date, even overtaking the market high investment volumes of 2006.
Momentum will continue across the hotel sector as Knight Frank predicts that operator consolidation will also be evident in 2016, allowing the industry to respond to threats from disruption taking place in the sector, such as home sharing sites and online travel agencies having increased prominence.
Read the full story from Hospitality & Catering News here.
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