Hotel Owner February 2019 | Page 5

MONTH IN REVIEW GO ONLINE www.hotelowner.co.uk START: THE MONTH’S NEWS BEGAN HERE HOTEL INVESTMENT UK hotel transaction volumes reached £6.6bn in 2018 UK hotel transaction volumes reached a total of £6.6bn in 2018, up 25% on the 2017 total, according to global real estate services provider Savills. The group said the amount is 75.7% up on the long term average of £3.78bn, and has been driven by an “active portfolio market” and “increased activity from overseas buyers”. Overseas investors accounted for 54% of total transaction volumes, up 20.5% on 2017 to reach £3.3bn in 2018. This is the second highest amount ever invested in the sector by the group, beaten only by 2015 volumes which reached £4.3bn. The top three by country were Israel (£1.1bn), France (£860m) and Canada (£420m). On average, international investors spent on average £76m per deal; 3.4 times more than domestic purchasers. UK purchasers accounted for the lion’s share of deal count at 75%, however this amounted to only 46% of volumes at £2.99bn. Additionally, portfolios accounted for 53% of the annual investment volumes for 2018 at £3.5bn over 21 deals, which Savills said is “significantly up” on the 16 portfolios traded in 2017 for a total of £1.5bn. Of the top 10 portfolios that transacted in 2018, the average value stood at £332m, 123% higher than in 2017, and the increased transaction volumes in the sector were combined with larger portfolio sizes. The top 10 deals averaged 2,000 keys per portfolio – a 119% increase on 2017. February 2019 1 2 HOTEL OPENINGS Nadler Hotels to open flagship Covent Garden hotel Nadler Hotels will open its fifth property, The Nadler Covent Garden, on the corner of Bedford Street and the Strand on 4 February 2019. Overlooking the Strand, the 57-bedroom boutique hotel, minutes from Charing Cross and Covent Garden stations, will feature six levels, including a reception and lounge on the ground floor. All bedrooms will offer free ultra-fast Wi-Fi, free UK phone calls, pocket- sprung beds, interactive TVs, work desks with USB and power points, spacious bathrooms and independently controlled AC throughout. Each room also features a bespoke mini kitchen with microwave, sink, fridge , BRITA filter water tap, kettle, crockery and cutlery, and a Nespresso coffee machine with complimentary capsules. Located in a 1907 Edwardian property, many of the building’s original features have been restored. David JM Orr, CEO of Nadler Hotels, said: “Our team is extremely excited to open our newest hotel in the heart of one of London’s most enchanting destinations. “As with all our hotels, our focus is to provide guests with exceptional service, comfort and convenience, and curate a special connection with the local area. The property will also feature many beautiful design enhancements, which we can’t wait to reveal to our guests.” 3 4 5 6 7 8 REFURBISHMENTS Strand Palace unveils next stage of multi- million pound refurbishment The Strand Palace has unveiled plans for its ground floor refurbishment project, part of a multi-million pound investment that has seen the hotel take onboard the transformation of all 785 guestrooms and the building’s façade. Taking place from the new year to early summer, the ground floor project will see the reception, concierge, restaurant and bar areas transformed into a “stylish hub in the heart of London”. According to the hotel, the new public spaces are designed as “aesthetically intriguing salons”, and have been designed as “flexible lifestyle areas” where guests can relax or work wherever they choose. David MacRae, managing director of the Strand Palace, said: “108 years in the making, this new chapter [of the hotel] is immensely exciting and will truly reflect our grand name. Ever since we first opened our doors in 1909, the Strand Palace has put the guest experience at the forefront of all we do. “The new ground floor, along with the new guestrooms is set to offer our guests the best experience possible right here in the heart of London, and we are eager to reveal this project during early Summer 2019.” The investment of overseas capital into UK hotels is testament to the strength of the sector even when facing Brexit uncertainty Tim Stoyle, head of UK hotels, Savills www.hotelowner.co.uk 5