Increased investment from institutional investors predicted for hotel sector


The UK hotel sector is predicted to see increased investment from institutional investors this year, although transactions may decrease slightly.

This is according to investment management company JLL’s UK Property Predictions 2018 report.

Institutional investors such as banks, insurance companies, pensions and hedge funds invested heavily in leased hotels throughout 2017, and JLL says there is no sign of the demand falling in the year ahead.

Although some investors may have filled their quotas, new money continues to be raised and it predicts business to continue at current levels.

While JLL expects to see growth during 2018, the uncertainty over Brexit and slowdown in the UK economy may reduce business visits and dampen domestic spending, resulting in muted revenue per available room growth.

In London, the addition of 7,800 new hotel rooms poses pressure on hotel performance, however it is hoped the increase in tourism activity will counterbalance this.