Market Insight: Hotels in East Anglia

East Anglia has long been one of the UK’s most popular tourist destinations, with its picture-perfect coastline, rural villages, forests, heathlands and parks, as well as an abundance of tourist attractions. As reported by Visit East of England, the East of England saw the country’s biggest rise in visitor nights and spend last year, according to the 2024 Great Britain Tourism Survey (GBTS).

As such, the region is an area of growing interest for hotel operators and investors, offering a wealth of opportunities for those looking to enter the sector or expand their portfolios.

What’s happening in the hotel market in the region?

The market is very active, and over the last six months a broad range of hotels, hospitality sites and leisure venues have come to the market.

Despite concerns around operational challenges and cost pressures impacting businesses, hotels in the East are holding up well. East Anglia achieves consistently high ‘staycation’ bookings, due to the consistent appetite for domestic travel, and we are seeing that newer hotels are starting to cater more towards events and functions, with ‘destination’ wedding venues attracting significant attention and performing well.

Matching sellers and buyers at any time remains a challenge, but with lower interest rates and more people seeking UK-based holidays, there are lots of active buyers in the market eager to acquire businesses. Current supply is struggling to meet demand, therefore it is an opportune time for anyone thinking of selling to explore their options and exit strategy.

Are there any particular hotspots?

North Norfolk, East Suffolk, and Cambridge are particularly sought-after in the region, particularly their coastal hotspots and rural villages which capitalise on the picturesque surroundings. Hotels in these locations attract a lot of interest, from experienced and first-time buyers alike.

Assets providing ten to 50 bedrooms are also in high demand.

There has been a rise in demand for holiday accommodation businesses, such as cottages, holiday parks, campsites and glamping pods, with our specialist leisure team in the region noting a significant increase in the level of interest in these businesses.

What are the opportunities for buyers?

There is a growing trend that buyers are looking to acquire leaseholds or deferred payments, due to some of the challenges in securing bank debt. Despite the usual concerns of sellers relating to lessee’s covenant and potential tenant default, leasehold opportunities are proving popular, in both providing income for the owner and an opportunity to exit the business, and a low entry cost for buyers.

Some recent examples include:

• The Ship Hotel, Brancaster, Norfolk

This well-known hospitality business, located on the North Norfolk coast, comprises nine en suite bedrooms along with a solid food and beverage offering. We were able to secure an experienced tenant who was already operating in the area and looking for their next venture.

Consequently, the seller achieved rental income and was able to exit the business to concentrate on other interests, whilst creating an exciting new opportunity for the buyer.

• Wayford Bridge Inn, Stalham, Norfolk

This 29-bedroom hotel has a strong seasonal food and beverage offering and is situated on a main tourist route within the Broadlands National Park. The owners were looking to retire, and we coordinated the sale to a mid-scale operating company who were looking to expand their portfolio of leasehold hotels. Covenant strength was good, with a highly experienced management team in place.

As a result, the seller was able to move on with their retirement plans with secure and guaranteed income, while the buyers were satisfied to have acquired a substantial asset on very manageable terms.

To find out more about the hotel market in East Anglia, or for a confidential chat about your business options, contact simon.jackaman@christie.com / +44 7860 189 708.