More than £51m has been spent in Scotland’s hotel market by overseas investors in the year to date, more than six times the £7.8m they spent in 2016.
According to Savills, US investors have been the most prevalent, spending £35.3m since January, all of which was invested in Edinburgh.
Key deals include US group PGIM’s acquisition of Safestay Hostel, British Virgin Islands entity International Hotel Properties purchase of Holiday Inn Express for £17.7m – the largest single transaction by an overseas investor – and a US investor buying the Bonham hotel.
Indian investors have also been active, spending £8.3m in key deals including MGM Muthu’s acquisition of both the Highland Heritage Portfolio and the Newton Hotel in Nairn.
Chinese group Creation Gem International acquired the Isle of Eriska Hotel and Spa, while Singapore investor 7 Hospitality bought Dundee’s DoubleTree Hilton.
Steven Fyfe, associate in the hotels team at Savills Scotland, said: “Hotels in UK regional cities are in high demand by overseas investors, fuelled by the relative weakness of sterling, resulting in advantageous exchange rates and sharper yields in prime markets.”
“While Edinburgh remains the most sought-after hotel market in the UK outside London, Scotland’s competitive tourism industry makes assets in other parts of Scotland attractive investments too, as demonstrated by 2017’s spread of deals in Dundee, Nairn, Eriska and the Isle of Bute.”
To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette
