Hotel investment transaction volumes hit £310m in 2023 – up 98% on 2022’s figure of £156m, according to data from Savills.
Scotland accounted for circa 14% of all UK hotel deals last year (of £1m+), with Savills recording 31 transactions.
The most notable transaction was the sale of the Waldorf Astoria in Edinburgh (pictured) for £85m to Henderson Park and Klarent Hospitality, which accounted for 27% of total activity.
Savills said 77% of purchasers were UK investors – an increase on the 63% seen in 2022 – with the additional 23% of capital coming from investors in locations including South Africa, UAE, Singapore and the Ireland.
The firm predicted that confidence would “continue to return to the market with a number of sale processes already underway”, adding that it expected Edinburgh to remain the best performing hotel investment market outside London in 2024.
Steven Fyfe, hotel capital markets director at Savills Scotland, said: “While 2023 was challenging, we saw 72% of all transactions take place in the second half of the year, demonstrating the enduring appeal of Scottish hotels despite a difficult market. We are already seeing stability return with a strong start to 2024.
“Key events this year, including the Six Nations, Taylor Swift playing three dates at Murrayfield in June and the growing number of people attending the Fringe and summer festivals will no doubt see visitor numbers rise. With all this in mind, from an investment perspective, we should see transaction volumes exceed £200m by the end of the year.”
