Hotel Investment Opportunities on the Rise

Increased Transactions Expected in 2024

The maturation of a significant volume of loans this year is anticipated to boost hotel transactions in 2024. Savills’ investor sentiment survey indicates that investment volumes for European hotels are set to significantly surpass those of 2023, with over €1 billion in UK hotel assets already changing hands this year.

Key Properties in Scotland

In Scotland, CBRE is marketing two notable properties: The Douglas Hotel on the Isle of Arran, priced at £2.9 million, and a luxury hotel conversion project in Edinburgh. The trend of repurposing commercial real estate into hospitality venues is gaining traction as office and retail values decline and construction and labor costs rise. This strategy is particularly appealing for owners and investors looking to expand their portfolios quickly, especially as elevated interest rates prompt more sales and the gap between seller and buyer expectations narrows.

Future Investment Plans

Savills’ survey respondents plan to invest around €10 billion into the hospitality sector over the next three years, focusing on lifestyle hotels, mid-market hotels, and serviced apartments. This robust investment outlook is encouraging for those following the extended-stay industry. For the latest updates, consider subscribing to our sister publication, Serviced Apartment News (SAN).