Hotel transactions in the United Kingdom in the first six months of 2013 increased nearly fourfold compared to the level of activity during the last half of 2012, according to analysis conducted by Deloitte.
The sale of the Intercontinental Hotel is among the deals completed this year
The total volume for H1 2013 added up to £1.96 billion. In H2 2012, the figure was just £500 million.
Maryam Mohajer, a senior manager in the travel, hospitality and leisure advisory team at Deloitte explains that as signs of the economic recovery have become stronger, the pace of hotel deals have gathered momentum.
She went on to say that a number of major deals have been completed in the first half of 2013. Compared to the same period last year, volumes were almost doubled.
Deals outside London dominated the first six months of the year. The sale of the Principal Hayley portfolio of 23 hotels to Starwood Capital was one of the noteworthy deals.
Other major transactions to close during this period were the acquisition of 42 Marriot-operated hotels by the Abu Dhabi Investment Authority and the acquisition of Malmaison and HdV by KSL Capital Partners for £180 million.
Single asset transactions dominated the London market. The sale of the InterContinental Park Lane by IHG for £300 million and the freehold acquisition from the Crown Estate for £100 million was the most notable example.
In the regions, there were several single-asset transactions which were driven by distressed sales. The Marriott Victoria & Albert in Manchester, with its 148 guest bedrooms, was bought by Westmount Hospitality for an undisclosed sum.
Deloitte is continuing to see strong interest in the market and further noteworthy sales are expected.
