Investment in hotels in Scotland reached £389.7m during the first half of 2018, which is nearly double the volume for the full 2017 year.
Activity in the sector totalled £195m during 2017, according to Savills’ latest report.
During H1 2018, investment was spread across 10 deals and involved assets from seven portfolios.
The 10 individual sales were in the £1m-£10m price bracket, with the exception of Edinburgh’s Caledonian Waldorf Astoria Hotel, which achieved a sale price of £85m.
According to Savills, portfolios accounted for 67% of investment value.
UK buyers were the biggest buying group, accounting for 41% of deal activity, followed by Middle Eastern investors (22%), Israeli investors (16%), US investors (8%), Canadian investors (7%), Singaporean investors (5%) and German investors (1%).
Steven Fyfe, associate director in the hotels team at Savills in Glasgow, said: “Investment volumes continue to build on the strong level of appetite we witnessed last year as we find ourselves already surpassing last year’s total annual volume at the half-year point.
“The spotlight is still fixed on Scotland for hotel operators and investors. Existing brands are looking to increase their representation in the country and new entrants are seeking to secure a foothold in the market.”
Across the UK, Savills research shows a total of £3.2bn was invested into hotels in the first six months of the year, with Scotland accounting for 13% of investment in terms of value.
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