UK hotel sector experiences growth surge as tourists cash in on the weak pound

By Georgia Bronte contact

- Last updated on GMT

UK hotel sector experiences growth surge as tourists cash in on the weak pound

Related tags: Hotel

The UK hotel sector experienced a significant increase in investment last year, driven by the weakened pound that brought in droves of tourists.

Figures from global property advisor Knight Frank show that throughout the course of 2017, despite the hospitality sector’s instability, investment in the UK hotel industry reached £5bn. This, it says, represents an increase of 35% year on year. Half of the figure came from foreign investors.

Its Spring Market Overview: UK Hotel & Leisure Property 2018 ​also demonstrates that 2017 was a positive year for UK hotels profit-wise, despite an uncertain economic landscape.

The sector’s success is built on increased tourism, devaluation of sterling, and a strong surge in portfolio activity and breakups resulting in more assets being available to the market, says Knight Frank.

“The UK hotel sector has witnessed a strong fourth quarter and overall a successful year, with a stable trading performance and a positive year of revenue and profits, underpinned by the strong boost in tourism and increased overseas investment, which we expect to continue into 2018,” says Julian Evans, head of healthcare, hotels and leisure at the company.

Although growth is predicted in the sector for the coming year, it is expected to be at a slower rate than in 2017.

Related topics: Trends & Reports

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