There was strong investor activity and interest in the UK hotel market in the first half of 2019, according to a new report.
The report states that the transaction values so far this year have been led mostly by portfolio deals, with further portfolio transactions expected to conclude in the second half of the year.
The most significant sale this year was the £1 billion purchase of four Grange hotels by Queensgate.
Single asset transactions have been undertaken across the UK, with sales of hotels in well-placed locations continuing to be in demand.
According to the report, there has been a good demand for investment around the UK, with hotels in major cities generating significant interest.
Investment in the hospitality and leisure industry has been strong, with Cumbria seeing significant investment, particularly with the recent £135 million acquisition by LXI.
The investment saw 14 Green King Pubs purchased and several other commercial properties, including a Costa property in Workington and a Travelodge in Cumbria.
In recent years regional cities have performed well, with Newcastle, Cardiff, Belfast and Plymouth all demonstrating growth in occupancy. London has continued to perform well, with a 1.7 per cent increase in occupancy in 2018.
Carine Bonnejean, Managing Director of Hospitality Consultancy at Christie and Co, said: “Despite some clear uncertainty, our UK Hotels Consultancy team has remained very busy with development appraisals, due diligence, repositioning and branding assessments across London and the regions and we anticipate a strong second half in terms of activity.”