Hotels 11 fleurets.com Whilst hotel pricing within prime Central London might reflect trading income yields around 5% in some instances (profit multiples in excess of 20 times), pricing levels are often skewed by perceived underlying real estate values (e.g. residential). Regional pricing is much more closely aligned to traditional income considerations and return on capital requirements, yields often typically fall between 8.5% and 12.0% (multiples of c.8 times to 12 times). Higher prices reflect those businesses that are in good condition, well operated, require minimum capital investment and are available with a supporting proven history of successful past trade and profit performance. These businesses offer buyers and funders greater confidence, and are most likely to receive maximum interest with the opportunity for competitive bidding. Key to a fluid transaction market is confidence; in terms of economic conditions; consumers supporting hotel trading performance through leisure and business spending; visitors and their security whilst in the UK; operators and buyers in terms of formulating business projections, investment plans and considering expansion opportunities; funders and their credit teams measuring ongoing support and acquisition lending; and sellers aspiring to maximise exit proceeds. Mounting Brexit uncertainty is certainly doing no favours for confidence, however, some might say that this presents an exciting opportunity, and so far at least, the hotel sector continues to thrive. Typical regional yields 8.5% - 12.0% Regional RevPAR +2.5% 2018