North West hotel investment remains stable

Around £82.5m of assets traded in 2024 compared to £85.6m in 2023, according to research by Savills.

More than a quarter of the value of North West hotel transactions in 2024 was accounted for in a single deal – the £24m sale of the Travelodge in Manchester’s Piccadilly Gardens by L&G to Forma Real Estate.

Other hotel investment highlights in 2024 included Leonardo Hotels’ acquisition of Hotel Gotham in Manchester, Interesting Hotels’ purchase of Hilton Garden Inn in Snowdonia, and The Harland & Poston Group’s deal to secure Formby Hall Golf Resort & Spa.

While the value of North West hotel sales remained steady year-on-year, nationally £5.75bn of assets were sold, more than double the volume in 2023, according to Savills.

This was largely driven by portfolio transactions – like Blackstone’s acquisition of Village Hotel and KKR and Baupost’s purchase of 33 Marriott hotels – which accounted for 55% of total investment volumes.

Tom Cunningham, director in Savills hotel capital markets team at Savills, said: “The UK’s hotel sector as a whole demonstrated resilience in 2024; with a range of quality assets, and hotels acting as a robust hedge against inflation, they continue to appeal to international investors.

“The market in the North West has seen healthy demand from a variety of different types of buyer, with hotels of all different sizes and types seeing demand, and we predict that activity will continue to be robust in 2025.”