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Brexit impact on the hotel sector

06/27/2016| 2:57:15 PM|

A vote to leave the EU would dent the perception of Britain as a ‘safe haven’, at least in short term, and a decline in the overall appetite to acquire hotel stock is expected.

CBRE’s recent report ‘Heading for the Exit?’ considers the property market impacts of the UK referendum on EU membership. 

THE HOTEL SE​CTOR IMPACT

UK hotel liquidity, in particular, has been driven in recent years by international inbound capital – a share of which has been seeking security and stability. 

A vote to leave the EU would dent the perception of Britain as a ‘safe haven’, at least in short term, and a decline in the overall appetite to acquire hotel stock is expected.

That said, we do expect uncertainty to have a reasonably positive impact on hotel cash-flows as interest rate rises are deferred until there is greater clarity on the future of the UK economy. A low interest rate environment in recent times has boosted consumer spending.

Association of British Holidaymakers (ABTA):

The fall in value of the pound will have an immediate impact on holidaymakers and their spending power overseas.

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TAGS: Brexit | UK | EU | hotels
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