Commercial Finance Specialists

Investment interest in the hospitality sector is growing as signs of recovery begin to emerge, according to a new report.

Hospitality commercial development is set to get underway in 2010, as large multiple operators across the sector begin pressing ahead with expansion, according to a new report.

Savills' Licensed Retail report indicated that there were signs of operational resilience across the sector throughout 2009.

The report also indicated that more sources of finance could soon become available, indicating that investor appetite is returning to the sector, particularly for pub and restaurant asset financing.

Yields are also in positive territory - crucially outside of the London region at 6.5 per cent for pubs and six per cent for restaurants.

The most expensive rents are found in Central London, where the highest costs are between £45 and £50 per sq ft.

However, the report indicates that future success in the industry for commercial development investors and businesses will depend on the quality of premises and their locations.

According to Kester Cunningham John, partner of accountancy at Carter Backer Winter suggested earlier this month that poor economic conditions and bad weather are likely to contribute to an upturn in business failures among hotel chains.