Scottish hotel sector checks in major jump in investment
The Scottish hotel market is being increasingly checked out by investors, with an 166 per cent jump in investment volumes in 2021 from the previous year, according to a new report.
Property advisor Savills said the total figure achieved in 2021 was transacted across 18 deals, with domestic buyers accounting for 54 per cent, and international contemporaries the remainder. Last year’s total is also 12 per cent up on 2019’s figure of £165m.
Steven Fyfe, associate director in Savills’ Scottish hotels team, noted the positive impact of Scotland being high on the staycation list. “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,” he added.
“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.”
Savills pointed out key deals to have taken place in Scotland last year, such as the sale of the Macdonald Holyrood Hotel, the acquisition of the Scores Hotel in St Andrews, and the purchase of the Bruntsfield Hotel in Edinburgh.
It also highlighted firms set to open their doors north of the Border, such as Gleneagles Townhouse in the Scottish capital, W Edinburgh at St James Quarter, and Virgin Hotels, arriving in both Glasgow and Edinburgh city centres.
Mr Fyfe also said the market has entered 2022 “with the strong sentiment of 2021 behind it,” but faces challenges such as increasing VAT.