Retail & Tourism News

South West hotel sector buoyant despite Brexit uncertainty

Share Article

Written by: Hannah Baker | Posted 20 April 2018 16:08

South West hotel sector buoyant despite Brexit uncertainty

The hotel sector in the South West experienced significant growth in 2017, bucking the national trend.

The ‘Hotels Economic and Property Market Review’ by Bristol-based commercial property firm GVA analysed hotel performance, and supply and investment trends across  key UK markets.

In 2017, investment transactions in the hotel industry across the UK exceeded £4billion while the number of overseas visitors and the popularity of domestic ‘staycations’ resulted in rising visitor numbers.

The South West benefitted considerably from this, with research from Barclays suggesting 30 per cent of UK residents who are intending to take ‘staycations’ plan to visit the region and 10 per cent of overseas visitors visiting the UK intend to visit the South West.

Read more: Bristol Hoteliers Association appoints Imran Ali as chair

These increased visitor numbers are reflected in the performance of South West hotels in particular in 2017, with increases in occupancy, average daily rate and revenue per available room when compared with the previous year.

The UK hotel market has continued to be popular among investors in 2017, with information from Property Data showing investment transactions in the  industry exceeding £4.8 billion, an increase of 53 per cent on 2016.

Investor appetite was present in the South West with Aprirose purchasing the 275-bed, four star Mercure Bristol Holland House hotel for £45 million to be run under the management of RBH.

John Coggins of GVA said “The UK Hotel market is in good health despite wider economic and political uncertainty. The local market in the South West remains strong with rising returns and investment values encouraging prospective purchasers, operators and investors to consider opportunities in region.”

Pictured: John Coggins, GVA

Share Article