Christie + Co hails double-digit hotel property price growth
The UK hotel sector is booming, with average sales prices soaring by 17.2%, according to figures compiled by Christie + Co.
The bullish market was reported today at the Hospitality Show at a Business Outlook session hosted by The Caterer.
Christie + Co regional director Lee Howard, speaking at the Business Briefing Stage at Birmingham's NEC, said: "This is the first time for a long time we have had double-digit growth. In the words of our managing director Chris Day, 2014 was the year in which the hotel market really came back to life.
"These average price indicators were largely driven by having multiple bids on hotels and groups of hotels that we have brought to market. We had multiple offers on both private and corporate sites."
By comparison, the movement in average hotel prices in 2013 was 5.7% while in 2012 there was a 3.1% drop in prices.
Howard said there was an average of 10 viewings per hotel and the interest had helped to drive multiple bidding and the value of the price indicator.
There was also good news for the restaurant and pub sectors, where prices increased by 11.1% and 8.6% respectively, far outstripping corresponding rises of 4.7% and 3.3% in 2013.
Howard said private equity had returned to the pub sector. He said: "In 2015, I predict there will be more pubs being sold staying as pubs. Private equity will continue to be interested in the sector. Values will be driven up. There will be interest in the traditional free house sector with entrepreneurs coming into the sector."
During a wide-ranging expert panel discussion, speakers agreed that customers were more value-conscious in the wake of the economic slump. Restaurateur Andreas Antona, chef-patron of Simpsons in Birmingham, said diners' expectations had risen.
Antona said: "Most of our customers are now Michelin inspectors. They know about food more than we do. That is what drives us.
"It is a difficult marketplace and it keeps you on your toes. It is about value at every level. You can have value at £5-a-head or £100-a-head. Quality is the key word."
