The market is experiencing a shift in buyer profile with European and Middle Eastern investors, alongside real estate funds, family offices, small and expanding multiple operators and other longer term investors coming to the fore. Particularly strong appetite exists for investors looking to secure long dated, fixed income assets, hotels as an alternative investment class being very much in the sights, an example of which being Secure Income REITS’ acquisition of 76 Travelodge Hotels for around £245million earlier in the year. Investments with index linked growth prospects are attracting very keen yields, Premier Inn Hotels and Travelodge investments frequently transacting. We are also witnessing the growing occurrence of ground lease/income strips as an alternative method of financing with hotel owners/buyers capitalising on the weight of money chasing long term secure income investments, confident that the value of their retained long leasehold hotel interests are supported by the strong prevailing hotel market conditions. There also remains a steady flow of selective purchases by both established and expanding multiple hotel operators. • Earlier in the year Fleurets acquired two Surrey hotels on behalf of Young’s - the 43 bedroom Park hotel, Teddington and the 51 bedroom Bridge Hotel, Chertsey, for around £11.6m. • Acting on behalf of the Coaching Inn Group, we acquired the group’s 15th hotel, the 31 bedroom Swan Hotel in Stafford, from the Lewis Partnership. • We very recently concluded the sale of the 60 bedroom Manhatten Hotel in Blackpool to Daishs Travel off a guide price of £895,000, increasing their portfolio to nine hotels. With continued uncertainty around Brexit, a large proportion of hotels now owned or having been acquired by longer term investors, transaction volumes over the coming year are expected to be more subdued, perhaps more aligned to 2017 levels. Hotel trading performance across the UK remains robust. London hotels continue to perform at very high levels, albeit having somewhat plateaued, and the regions continue to demonstrate solid growth. Key performance Date Deal Hotels Keys Approx. Reported Price Approx. Price Per Key/ Hotel Buyer Jun 2016 Atlas Hotels 47 5,575 £530m £95,000/£11.3m London & Regional Sep 2016 Travelodge Investments 55 £196m £11.3m Secure Income REIT Sep 2016 Starwood Hotels & Resorts £9.5bn £3.6m Marriott International Oct 2016 Hotel Collection Hotels 5 665 £75m £112,800/£15.0m Cairn Group Mar 2017 Duchy Hotels 3 295 £12.5m £113,000/ £15.0m Fairtree Capital May 2017 Generator Hostels 12 £380m £42,400/ £4.17m Queensgate Jul 2017 Crerar Hotel Group 13 853 Undisclosed Undisclosed FICO Castle (Subsidiary of FICO Holdings (UK) Jul 2017 Premier Inn Investments 4 340 £37.95m £111,600/ £9.49m Knight Frank Investment Management Aug 2017 Qhotels Portfolio 26 3,683 £520m £141,200/£2.0m Aprirose Investments Aug 2017 Portland Hotels 5 536 £40.0m £76,600/£8.0m Leonardo Dec 2017 Jurys Inn 37 £800m £21.6m Fattal Hotels Group and Pandox AB (Publ) Jan 2018 Amaris Hospitality Portfolio 23 4,000 £600m £150,000/£26.1m LRC Group Feb 2018 Hilton Hotel Portfolio 7 1,334 £135m £101,200/ £19.3m Starwood Capital Group Mar 2018 IBIS Styles 4 497 £30m £60,400/£7.5m Starboard Hotels May 2018 Ribbon Hotel Portfolio 20 4,840 £742m £153,300/£37.1m Dayan Family Jun 2018 Principal Hotel Portfolio 14 2,638 £830m £314,600/£59.3m Fonciere Des Regions July 2018 Doubletree by Hilton 7 1,000 + Undisclosed Undisclosed LRC Group 76 Travelodge’s acquired for c. £245m