By Rob Starr, Content Manager, Big4.com
Hotel transaction activity across the UK totalled around £300m in the second half of 2012, significantly behind the volume and values reported in H1 2012 (c. £1bn) and H2 2011 (c. £2.5bn), according to analysis by Deloitte, the business advisory firm.
Single asset deals continue to be dominated by London where pricing remains strong. The most notable transaction was the acquisition of the Cavendish Hotel by the Ascott Group for £159m. Outside the capital, distressed sales dominated the market. These included the sale of the Glasgow Radisson to Azure Properties; Hyatt Hotels Corporation’s acquisition of the Hyatt Regency in Birmingham and KSL Partners’ acquisition of the Belfry.
Nick van Marken, global head of hospitality at Deloitte, comments: “Some recovery in the UK hotel transaction market was apparent in 2011, mainly in the second half of the year, and this continued into the first months of 2012. However, activity slowed in the second half of 2012 – whilst there are a number of transactions in the pipeline, we saw very few get across the line.