Chinese investors set to grab a bigger slice of UK hotel market
CHINESE investors are set to more than double their share of global hotel acquisitions over the next four years, new research out yesterday shows, with the UK to benefit the most.
According to research conducted by Real Capital Analytics (RCA) for Savills, Chinese investors have spent £1.6bn outside of their home market over the last five years and currently account for around four per cent of cross-border global hotel acquisitions.
But this is expected to increase to 10 per cent, with buyers using the hotel deal as a way of gaining a foothold into new markets.
In the UK, Hong Kong and mainland Chinese investors have snapped up around 18 hotels and hotel developments, spending close to £450m.
Savills predicts that this activity could more than double over the next three years, with buyers from these markets spending an average of £200m per year.
A growing number of Hong Kong and Chinese hotel chains are also looking to establish their own brands to cash in on the growth in Chinese tourists to the UK.
Visit Britain says the number of visitors could double to 650,000 per year by 2020, helped by a relaxation of visa rules.