Hotel investment transaction volumes in Scotland fell by 34% last year compared with 2021, according to the latest data from Savills.
The company said there were 24 transactions of more than £1m in 2022, totalling circa £149m, which was a significant drop on the previous years’ tally of £226m.
It accredited the fall to the wider macroeconomic conditions, including rising debt costs, impacting the UK hotel market where overall investment volumes were down 27.5% year-on-year.
Steven Fyfe, hotel capital markets director at Savills Scotland, said: “While the second half of the year was challenging, in terms of transactional volumes, H2 was marginally stronger than H1 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.”
