Investor interest in UK hotels holds firm despite headwinds

According to Christie and Co’s latest Hotel Market Review, investor interest in UK hotels remains strong despite economic, political and cost pressures.

According to Hotstats data, London’s RevPAR fell 2.4% year-on-year to May, although regional UK markets fared better. Rising labour costs due to National Insurance contributions and minimum wage increases have also weighed on profits, although utility costs have fallen by more than 4.5% so far this year.

The report says hotel owners and operators focusing on cost control, active asset management and operational innovation are best placed to navigate such headwinds.

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