Hotel transaction volumes in Scotland reached £310 million in 2023, up 98 per cent from 2022’s £156 million, data from Savills has revealed.
Over the course of the year, Savills recorded 31 transactions including the sale of the Waldorf Astoria in Edinburgh for £85 million to Henderson Park and Klarent Hospitality - reflecting 27% of overall volumes - as well as the sale of Mar Hall by EY Parthenon to Dubai based Dutco, which was marketed at a guide price of £12 million.
Overall, Scotland accounted for around 14 per cent of all UK hotel deals last year.
Turning to buyer profile, 77 per cent of purchasers were UK investors, up from the 63 per cent seen in 2022. The remainder 23 per cent of capital came from locations including South Africa, UAE, Singapore and the Republic of Ireland.
Looking ahead, Savills notes there are several sale processes already underway, adding that a number of new openings in Edinburgh are setting up the city to be the highest performing hotel market outside of London in 2024.
What they said
Steven Fyfe, hotel capital markets director at Savills Scotland said: “While 2023 was challenging, we saw 72 per cent 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. From an investment perspective, we should see transaction volumes exceed £200 million by the end of the year.”