Hospitality Property Market Q1 - 2025

So what did the first quarter of 2025 look like for the Hospitality Property sector, Transaction levels, deals agreed, general activity, what were the headlines?

Market sentiment became a little more solid coming into January, with a return to some competitive bidding in the mid range values, however deals in excess of £1,250,000 remain more difficult to 'get away', although this is made easier for those using a creative agent and broker offering the correct staging, fanfare marketing, proper exposure, and maximum buyer reach. Lenders are once again starting to compete with each other on rates, and some decent 5 year fixed mortgages are available again in the market. I can see sub 6% deals starting to appear again on commercial property loans in the next quarter, which will offer a buyer boost and something we haven't seen for along time. With some new players entering the residential mortgage market with 100% LTV deals for those with good credit, who will be the first to shake up the commercial mortgage markets, we shall see, but someone will fill the gap.

The market for properties over £1,000,000 as an asking price be they Pubs with rooms, Hotels, Restaurants, or a general mixed hospitality offering, showed us the following stats in Q1 -

New listings surged by 23.80%.

The number of properties for sale increased by 19.03%.

Sales agreed rose by 16.51%.

Price changes climbed 17.75%.

Properties withdrawing from the market saw an uptick of 11.06%

That said, the biggest stat of all for those who have been up for sale over 12 months or more, is as follows - One line from the 'Rightmove Market Report', and something to think about for sure if you are genuinely motivated to move on -

'More than 100,000 properties for sale had their asking price lowered last month, the highest recorded for over 6 years, a new report has highlighted'

More importantly 'The number of price reductions hit 104,794, which is more than at any time since the accounting period 2018/2019 according to property data firm TwentyEA'

#smallhotels #guesthouses #pubs #restaurants #hotels #hospitality #bedandbreakfast