Hotels and hospitality bulletin: UK hotel deals up 74%
Transactions, record per-key pricing, who is buying and selling, RevPAR and margin pressure, and the actions hotel owners and asset managers should take now.
Key points
- The UK led Europe with EUR 3.22bn of hotel investment in the first half, up 74%; London alone took EUR 2.3bn across 24 properties.
- Average price per room reached a decade-high EUR 268,000 (HVS), as buyers pay up for fewer, better assets.
- Real estate investment companies bought 43% of volume while private equity turned net seller of EUR 1.3bn.
- European RevPAR growth is forecast at just 1.2% this year, and the 2027 forecast has turned negative.
- UK payroll costs are rising at close to twice the rate of revenue, so budget and report on profit per room, not RevPAR alone.
- Stress-test every refinancing date against both rate paths, revisit operator terms and price the capex bill per key now.
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