UK: Evaluation from property consultancy Knight Frank reveals that lodge funding within the UK through the first six months of 2024 totalled £3 billion, bolstered by portfolio transactions.
Main offers within the first half of the yr embrace Blackstone’s £850 million acquisition of the 33-strong Village Lodges portfolio; Starwood Capital Group’s £800 million buy of 10 Radisson Edwardian Lodges in London; and Landsec’s £400 million disposal of its lodge portfolio to Ares Administration.
The £3 billion funding marks a major improve from the identical interval in 2023 (£990 million), and sits 10 per cent decrease than the pre-pandemic stage (H1 2019).
US traders have been driving transaction quantity, accounting for 77 per cent of the entire UK funding exercise. London has additionally seen essentially the most exercise with round 70 per cent of funding focussed on the capital.
Henry Jackson, companion and head of lodge company, Knight Frank stated: “The path of journey for the sector is constructive and the quantity of portfolio transactions is proof that the sector stays enticing. A rise within the high quality and the variety of resorts looking for to transact is predicted, as lodge homeowners who’ve prolonged their funding cycles now search to understand their exit methods. The place a selected asset meets all of the funding standards, now we have seen sure patrons prepared to pay full costs for these property.
“With a powerful pipeline of resorts at the moment in legals, the Knight Frank resorts crew expects this momentum to proceed, and an rate of interest reduce will serve to additional improve the present optimism for funding within the UK lodge market,” he added.
Based on Knight Frank, there’s proof to counsel that stakeholders are rising the stress on homeowners to convey property to the market at deliverable ranges for a extra well timed sale.
