The United Kingdom is become one of the most popular destinations for those who want to enter into the property investment market by becoming one of the increasing number of people who are considering hotel property investment as the first step on the real estate investment ladder. The emergence of the global economy from the doldrums of the global economic downturn has reignited the tourism and business travel market – and the U.K. (with London leading the pack) has once again become one of the most popular destinations for both tourists and business travelers.
This revitalisation of the global travel market has seen new hotel development keeping pace with the growth. In fact the new build in the hotel industry is growing at an impressive pace. For instance in 2018 around 21,000 new rooms were added to the U.K. hospitality inventory – and this robust growth of over 3% year on year seem to be accelerating rather than slowing. The fastest growing sector of all is that of budget hotels – meaning that the barriers to entry as far as the cost of acquisition is concerned are lower than ever – and represent an excellent opportunity for first time property investors.
Given this state of affairs it is no wonder that investment in hotel property is also showing robust growth. However, given the increasing choice – what are the top hotel investment locations UK?
It almost goes without saying that the jewel in the crown of hotel property investment locations is London. By 2018 London had seen an increase in new rooms of around 70% year on year – and the forecast is that growth in hotel rooms going forward will be in the region of 5% per annum. If there is one city in the United Kingdom that is almost guaranteed to provide the hotel property investor with exceptional returns it is London.
However there are other cities in the U.K which have been identified by property analysts as providing the hotel property investor with the opportunity to obtain a superior return in investment. These cities include Inverness, Edinburgh, Brighton, Cardiff and Liverpool.
There are new investors who may be worried about the impact of the increasingly complex Brexit issue might have on the hotel market. However, many pundits are convinced that the Brexit issue will not have any lasting impact on the attractiveness of the hotel property investment sector. According to many analysts demand will stay vibrant and if there is one restriction on the growth of tourism related to the hotel market it is the fact that supply is restricted – even as new builds accelerate. This in effect means that demand for beds is high and seems set to remain high – once again making hotel property investment even more attractive.
A recent survey of current hotel property investors in the United Kingdom showed that 94% of respondents would either be matching or alternatively increasing their exposure to this sector – given that statistic it might just be time to seriously investigate top hotel investment locations UK.