The Scottish hotel market has seen investment volumes reach £185 million in 2021, a 166% increase on the £70 million transacted in 2020 and is 12% up on the 2019 total of £165 million, according to Savills.
The international real estate advisor notes that the total figure achieved in 2021 was transacted across 18 deals, with domestic buyers accounting for 54%, while international buyers represented 46% of transactions in Scotland.
Prominent deals last year include, the sale of the Macdonald Holyrood Hotel, the acquisition of the Scores Hotel St Andrews and the purchase of Bruntsfield Hotel Edinburgh.
What They Said
Steven Fyfe, associate director in Savills Scottish Hotels team, said: “Despite the in-evitable impact of hotels essentially being closed during the pandemic, Scotland was high up the staycation list when restrictions began to ease after the first lock-down.
“As a result, our hotel market has performed relatively well over the last 12 months and we have seen renewed interest from investors who have shown confidence in the sector. This is evidenced in particular by many deals taking place during the first half of the year when hotels in the region had not fully reopened. When hotels did actually open in May 2021, it generated further confidence in the market.”