Christie & Co’s hotel 2024 Mid-Year Insight reveals UK hotel transaction volumes normalised in H1 2024
Specialist hotel property adviser, Christie & Co, has today launched its Hotels 2024 Mid-Year Market Insight, which reflects on market activity and trends across the UK and European hotel transactional markets in the first half of 2024 and provides an outlook for the rest of the year.
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The report reveals that UK hotel transactional activity is finally showing signs of a normalised market with £3.6bn of UK hotels having transacted in the first half of 2024. This is a significant increase compared to the £1bn recorded in H1 2023, leading the UK to reclaim its position as the top European hotel transactional market.
During H1 2024, Christie & Co completed on over 40 hotels in the UK, double the figure achieved during the same period in 2023, demonstrating the uptick in transactional activity. Valuation activity remained steady across the UK and Europe, whilst our European consultancy team delivered a number of high-profile strategic reviews, due diligence projects and operator searches.
The report also provides detailed insight on each of the UK’s regional markets along with the European markets in which Christie & Co operates.
Looking ahead, Christie & Co anticipate the progressive uptick in stock levels and transactional volumes to flow through during the second half of 2024 and into 2025, driven by refinancings and government contract withdrawals. They also expect to see continued polarisation of the market towards economy and luxury segments and for performance to plateau and profit conversion to normalise, particularly in leisure-led destinations and London. Yields should remain stabilised and there will be a big emphasis on conversion brands to capture the independent hotel market with limited capex investment. Development will only pick up once financing and development costs become more affordable.
Carine Bonnejean, Managing Director of Hotels comments, “Across the UK and Europe, transaction volumes are on the up, particularly in the UK, after a challenging 18 months, We anticipate a very strong finishing to the year with 70 UK deals in the pipeline. 2024 should be a much better vintage for hotel transactions and based on YTD figures, we can be hopeful that we should exceed levels seen since the pandemic. ”
To read the full ‘Hotels 2024 Mid-Year Insight’, CLICK HERE.
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For further information on this press release and interview requests, contact:
Bronte Hughes, Corporate Communications Manager
P: +44 (0) 7721 420 656 or E: bronte.hughes@christie.com