Olympic win fuels hotel investment

30 January 2006 by
Olympic win fuels hotel investment

Securing the 2012 Olympic Games has fuelled unprecedented demand in London's hotel investment market.

After the announcement in July last year, costs for hotel stock have hit an all-time high, according to property agents Colliers Robert Barry (CRB).

Prices for a typical mid-market London hotel are now nearly at £200,000 per bedroom, compared with £100,000 only six years ago.

Initial yields for new operators have also come down to between 5% and 7%.

CRB director Colin Hall explained demand in the past year had been fuelled largely by European hotel companies, especially from the Spanish market, showing interest in London.

The past six months has also seen the re-emergence of Far Eastern buyers.

Hall said: "This is their (Far Eastern buyers) first serious foray into the market for almost 10 years.

It's likely we will see deals concluded this year with a number of these buyers as well as continued activity with European groups and existing London operators looking to expand."

By Emily Manson

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking