MONTH IN REVIEW
MONTH IN REVIEW
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AIRBNB INVESTMENT HOTEL SALES
The proportion of visitors to Edinburgh
using Airbnb has increased to 70% this
year, as the online platform accounted
for more than 1.1 million overnight stays.
According to the latest data from
Colliers International the commercial
property firm found that bookings on
Airbnb for properties in the capital
jumped by 20% in 2017 compared with
the year before, while the website’s share
of this huge visitor accommodation
market grew from 13% to 20%.
The study, carried out in partnership
with Hotelschool The Hague, comes
at a time when tourist destinations
around the world have been calling for
Airbnb to be regulated, capped or even
banned. In Edinburgh, the city council
recently announced that it would lobby
the Scottish government for a ‘licensing
regime’ to potentially cap the number
of Airbnb properties.
Alistair Letham, a director for Colliers
International in Edinburgh, said: “There
were concerns within the hospitality
industry that while the Airbnb website
is an undoubted success story, it has,
in part, been as a result of an unlevel
playing field.
“Its accommodation platform is
unregulated, unlike other parts of
the market, such as hotels and guest
houses – and demands for licensing
and regulation have been called for
by politicians. The question for local
authorities and regulators is the scope
and effectiveness of a future regulatory
framework.”
He added: “However, you can’t
blame property owners for taking the
opportunity that has been provided.
Given the shortage of affordable
accommodation in Edinburgh, during
the summer, you wouldn’t want to stifle
this trade either.” Investment into hotels in the south east
and home counties reached £724m in
the first half of the year, up 190% on H1
2017 levels, according to Savills. Kaleidoscope Collection, currently
made up of No.15 Great Pulteney and
The County Hotel, have expanded
the hotel group further with the
acquisition of Homewood Park Hotel
and Spa in Freshford.
Savills said the market has been
driven by a number of high value
portfolio deals and consistent appetite
from domestic investors.
According to the firm 96% (£695m)
of transaction volumes were portfolio
deals, with 13 deals taking place in
the first half of the year. There were
six individual transactions in H1 which
were predominantly in the £1-£10m
bracket, with the Bedford Swan Hotel
being the only exception, selling to
Distinct Group for £11.75m.
Savills said the region’s close
proximity to London and the coastline
ensure hotel occupancy levels stay
strong and above the UK regional
average of 76.1% in key markets with
Norwich at 80.3%, Southampton at
80% and Brighton at 77.8%.
Key deals in the region include the
sale of Project Sail to Young & Co’s
Brewery Plc for £11.6m and Mercure
Banbury Whatley Hall Hotel to Serani
Hotels for £4.25m.
Savills notes that domestic investors
have driven activity in the first half of
the year in 2018, accounting for 77% of
transaction volumes in the south east.
International investors remain active in
the market but have a preference for
large lot sizes. The 21-bedroom wisteria-clad hotel
on Abbey Lane is an a new country
house proposition to complement
Kaleidoscopes’ existing city centre
properties.
Owners Ian and Christa Taylor have
plans to transform Homewood into a
“laid-back country hideaway”. Outside
spaces will feature home-grown garden
produce and shepherd’s huts in the
woodlands, while onsite artisans will
produce everything from ceramics to
homeware, which guests will also be able
to purchase to take home with them.
The bedrooms, public spaces,
restaurant and spa will be refreshed,
while the next phase of the project
will see collaborations with local
businesses and creative talent to give
Homewood a completely new identity.
As with every Kaleidoscope property,
statement pieces of art and one-of-a-
kind touches will be at the heart of this
latest transformation, which is expected
to take two years to complete.
Airbnb bookings
in Edinburgh
jump 70% to more
than a million
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www.hotelowner.co.uk
South East hotel
investment levels
up 190% on H1
2017
The Kaleidoscope
Collection
purchases
Homewood Park
We’re delighted that
Homewood continues the
next phase of growth for the
Kaleidoscope Collection
Ian and Christa Taylor, owners,
Homewood Park
September 2018