Hotel transaction volumes in Scotland totalled circa £149m across 24 key deals during 2022.
Property services firm Savills reported that this level of activity marks a 34% decrease on the £226m worth of investment volume in 2021, reflecting the wider macroeconomic conditions - including rising debt costs - impacting the UK hotel market, where overall investment volumes are down 27.5% year-on-year.
Scottish hotel transaction volumes in 2022 reflected around 5% of the £3bn in overall UK volumes.
Domestic UK buyers represented approximately 72% of transaction volumes, with the remaining 28% comprising international buyers.
Key individual transactions in Scotland included the Premier Inn Glasgow at Buchanan Galleries (sold for circa £30.2 million, 210 keys) and the former Park Inn Glasgow (circa £4.5m, 91 keys).
Key portfolio transactions incorporate the Chardon Portfolio, which saw Atlas acquire the Chardon Group, including Holiday Inn Glasgow Theatreland, Holiday Inn Express Glasgow, Holiday Inn Express Edinburgh Royal Mile, Holiday Inn Express Edinburgh Airport, Holiday Inn Express Dunfermline and Holiday Inn Express Perth.
Steven Fyfe, hotel capital markets director at Savills Scotland, commented: “While the second half of the year was challenging, in terms of transactional volumes, the second half was marginally stronger than the first in Scotland, demonstrating the ability to complete transactions in a difficult market.
“We are seeing stability starting to return to the market as we begin the new year with a number of sale processes underway.
“In terms of investment volumes, we expect a strong start to the year, with year-end volumes anticipated to reach £200m.”
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