Savills : Scottish hotel investment volumes up 166% YOY, says Savills
January 17, 2022 at 10:15 pm IST
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The international real estate advisor notes that the total figure achieved in 2021 was transacted across 18 deals, with domestic buyers accounting for 54%, while international buyers represented 46% of transactions in Scotland.
Steven Fyfe, associate director in Savills Scottish Hotels team, comments: "Despite the inevitable impact of hotels essentially being closed during the pandemic, Scotland was high up the staycation list when restrictions began to ease after the first lockdown. As a result, our hotel market has performed relatively well over the last 12 months and we have seen renewed interest from investors who have shown confidence in the sector. This is evidenced in particular by many deals taking place during the first half of the year when hotels in the region had not fully reopened. When hotels did actually open in May 2021, it generated further confidence in the market."
Key deals to have taken place in Scotland last year include the sale of the Macdonald Holyrood Hotel, the acquisition of the Scores Hotel St Andrews and the purchase of Bruntsfield Hotel Edinburgh. Scotland has also seen several high profile and established brands committing to its cities including the W Hotel Edinburgh, which will open at St James Quarter in July 2023 and Virgin Hotel, arriving in both Glasgow and Edinburgh city centres in March 2022. In addition to this, Gleneagles is expanding through the introduction of a private members' club in the heart of Edinburgh that will also offer 33 bedrooms.
Steven continues: "The market has entered 2022 with the strong sentiment of 2021 behind it, however, the sector faces a number of headwinds; Government support has been slowly tapered with the withdrawal of the furlough scheme at the end of September and the VAT rate for retail and hospitality increased from 5% to 12.5%, before returning to the standard 20% on 1st April 2022. Looking forward, as businesses increasingly put ESG at the forefront of their strategic plan, we also need to consider what that will look like for the sector."
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Savills plc published this content on 17 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2022 16:44:07 UTC.
Savills plc is a United Kingdom-based global real estate services company. The Company operates through a network of offices in the United Kingdom, Europe, Asia Pacific, North America, Africa and the Middle East. The Company's range of services covers various segments, which include residential, office, industrial, retail, leisure, healthcare, rural and hotel property, and mixed-use development schemes. Its businesses include Transaction Advisory, Consultancy, Property and Facilities Management and Investment Management. The Transaction Advisory business stream comprises commercial, residential, leisure and agricultural leasing, tenant representation and investment advice on purchases and sales. Its Property and Facilities Management business includes management of commercial, residential, leisure and agricultural property for owners. Its Consultancy business includes a range of professional property services, including valuation, project management and housing consultancy, and other.