UK Hotels sector sees increased foreign investment post Brexit
Lord Price (CVO), Minister of State for Trade and Investment, recently spoke about the growing interest in the UK from investors from several countries across the world.
In what has been described as the ‘’second Elizabethan Golden Age of trade and investment’’, Lord Price mentioned that he has heard from these investors that are seeking and finding opportunities to increase their investments in the UK. Even large retail groups are seeking to bring more British brands to their countries while others are continuing to look at options for investing in China-UK e-commerce.
From individuals to conglomerates, there now seems to be a rush to take advantage of the immediate after effect of the UK’s decision to leave the European Union. The sterling lost heavily against the US Dollar and the Euro, which meant investors could take advantage of the exchange rates that gave them more purchasing power.
Several reports have shown that these foreign investors from all over the world have chosen to increase their investments in the UK, especially with the purchase of land and property. Real estate agencies and property management companies, such as Colliers International, have seen an increased amount of activity in the purchase of UK commercial property.
Colliers International’s UK Hotels Agency team has reported the sale of several hotels, B&B’s and Guest Houses to foreign as well as domestic investors. They believe these transactions show the Hotel sector remains robust, even after the UK’s vote to leave the EU and the uncertain future economic outlook.
It is believed environmental issues, international disease outbreaks, security threats and terrorist attacks, predicted increase in cost of travel, and the EU referendum all had the potential to affect the hotel and the wider hospitality sector. However, the weakening of the sterling against the US Dollar and the Euro has had an unexpected beneficial effect on the sector.
The increased cost of travel and holidaying abroad in Europe and further out has created a greater interest in ‘staycations’ for individuals and families within the UK. In turn, the number of people going to destinations within the UK has significantly increased and the investors have noted this and have concluded that the hotel sector is a profitable and sturdy safe-haven for their investments.
If you require any further information on the topics discussed in this article please contact Chris Sutton or your local MHA MacIntyre Hudson advisor.