Tag: Residential Investment Consultant

Briefing: Healthcare, student housing, and hospitality

Posted on by Guy Lean

Hospitality properties are performing well this year, but outside of our industry, what other asset classes do investors have their eyes on?

There was 2.1% capital growth in UK healthcare property in 2014, and £4.2 billion invested in UK student housing in the first 5 months of 2015. Both sectors have had an increase in demand, with 16,800 more students in 2014 than 2013, and 11.4 million people currently aged 65 or over in the UK.

In this briefing three experts discuss healthcare and student housing and how it relates to hospitality:

According to the IPD UK Annual Health Property Index, healthcare property returned 9% in 2014. The Index also shows that in December 2014 there were a total of 1,073 Healthcare properties in the UK, with £3,957 million Capital value, and 41 funds.

Last year the Financial Times reported that there had been a particular rise in investment in the ‘UK’s £15.1bn-a-year care home market’. As discussed in the above video, there has been increased need for this type of property due to the increased aged population. According to the latest statistics from Age UK, there are now 3 million people are aged 80 or over in the UK. The number of people aged 60 or over is expected to pass the 20 million mark by 2030.

According to Savills, investment into student housing increased 23% 2013-2014, and increased 70% again in just the first 5 months of 2015. With a 3.4% increase in the number of applications for the current academic year, there looks to be a continued demand for this accommodation. The report suggests that the increase in purpose built student accommodation could help free up much needed residential properties.

As two examples of high performing sectors, both healthcare and student accommodation were discussed at the Hotel Alternatives Event this year.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: UK and Europe expect growth in 2015

Posted on by Guy Lean

A new forecast from PwC suggests that in 2015 the UK could see a 1.6% increase in hotel occupancy (to 78%), a 5.6% gain in RevPAR, and a stabilisation of GDP growth to 2.5%. In wider Europe, 17 out of the 20 cities in PwC’s European Cities Hotel Forecast 2015 and 2016 are expected to enjoy RevPAR growth close to or in excess of 2%.

According to the UK Hotels Forecast 2015 the number of hotel rooms in London will increase 5.3% in 2015, and with the current UK housing shortfall, hospitality is not the only market set for development. The UK real estate market in general has a positive outlook, as reported in the FT advisor, having seen 19.3% returns in 2014, the best since 1988.

In these videos four experts discuss the hospitality and real estate markets in the UK:

In Europe; Dublin, Madrid and London are set to have the highest RevPAR growth at 8.8%, 5.6% and 4.6% respectively. However no significant new supply is expected in Dublin in 2015. Room supply in London stood at 135,000 in 2014 and 7,200 more rooms are expected this year. The London Olympics in 2012 encouraged tourism to the capital city. In 2015 PwC predict that the Rugby World Cup will once again drive demand up in the UK. The forecast also predicts that UK regional rooms supply will increase by 1.7% in 2015, adding 9,000 rooms to the 2014 total of 464,200.

Hoteliers in the UK are recognising this positivity and feeling confident, according to the Hotelier Confidence Index from TripAdvisor. 77% of hoteliers are optimistic about profitability and 48% expect room rates to increase. According to the report UK hoteliers’ highest investment priorities are small scale renovations and online reputation management.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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