International Real Estate company, GVA reports renewed optimism in the hotel sector, following the ‘no’ vote in the Scottish Referundum.
In a recent report, Adam Lansdown of GVA highlights how markets loathed the uncertainty during the nine months leading up to The Referendum so that the property market in all sectors was held in suspense pending the outcome.
Adam Lansdown explains: “Although the Scots had the date of the referendum firmly in their diaries for a very long time, the realisation that a vote really would be cast in September 2014 and that major implications would flow from the decision distracted investorsâ€™ attention, seeding and fertilising the uncertainty that lead to inactivity. One well documented hotel sale in Edinburgh was actually conditional upon a â€˜Noâ€™ vote!
“This was further aggravated by a number of hoteliers voicing concern that their English clientele were staying away, feeling unwelcome and therefore wishing to holiday elsewhere. The actual numbers were probably tiny, but the concern was clear.”
So, what happens next in the world of Scottish hotel finance
Professional views are split between hope and expectation. “Most of us hope that business will return to normal relatively soon, and up to a point there is no reason why it should not as hotels and hospitality businesses are an essential part of the economy and when managed correctly can be very successful enterprises,” continues Lansdown.
With nearly 85% of the electorate holding a view on Scottish independence and nearly half left disappointed by the outcome, uncertainty remains, particularly with the General Election coming up in May 2015 so business has yet to adapt.
“Purely anecdotally, the day after the Referendum we noticed a sharp increase in activity where buyers and sellers called us saying â€œ…now letâ€™s get on with it…. The Ryder Cup turned the spotlight again onto Scotland, and the sun did literally shine on a highly successful event. Bookings are up, leading to improved tariffs and profit, and in a profit-related market this should restore the ground lost during the first half of 2014,” predicted Landsown.
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If you would like to know more about the hotel mortgage options available to you, contact Stewart Hindley & Partners today.