Scottish hotels market pulls in overseas cash

Overseas buyers have been targeting Scottish hotels with US investors leading the way.

Just under £51.3 million has been spent in Scotland’s hotels market by overseas investors so far this year, more than six times the 2016 annual figure, according to property advisor Savills.

US investors have been the most prevalent, spending £35.3m since January, all of which was invested in Edinburgh.

Key deals during the period include PGIM’S acquisition of Safestay Hostel, International Hotel Properties buying a Holiday Inn Express and a US investor purchasing the capital’s Bonham hotel.

Steven Fyfe, associate in the hotels team at Savills Scotland, said: “Hotels in UK regional cities are in high demand with overseas investors, fuelled by the relative weakness of sterling.”

Besides Edinburgh, 2017’s deals have included hotels in Dundee, Nairn, Eriska and the Isle of Bute.