Colliers International has promoted its specialist hotel valuer in Scotland, Andrew Pratt, to director, following strong demand for funding deals and refinacing in the sector.
A RICS registered valuer, who has been working in his current specialism with Colliers for five years, Andrew valued more than £750m of hotel assets in 2018 alone. He is based in the Glasgow office but works throughout Scotland.
He said: “There’s a real appetite to finance the right kind of property in the hotel and leisure sector, both as lending security for a purchase and for re-financing, from traditional high street banks and, more recently, from secondary lenders, such as challenger banks and small investment houses. This has led to an increase demand for hotel valuation services.”
Andrew said that the properties which were attracting financing were those in good locations which had the capacity to trade profitably under good management, even if they were not currently doing so.
“I’ve always specialised in valuing business properties which are a going concern,” he said. “In the hotels sector, the value of an asset is intrinsically linked to the returns that the owner can get. The properties cannot normally be used in other ways, without significant work, so that return has to be earned as a hotel.”
Andrew said there continues to be a strong appetite both to finance and to build hotels in Scotland, especially in and around Edinburgh and Glasgow. As well as valuing existing buildings and businesses, he is often called in to provide an overview of the potential trading and value of hotels which are proposed as part of new-build developments.
Both cities have seen numerous new hotel openings in recent years, and occupancy levels remain strong, especially in Edinburgh where Colliers’ own figures show occupancy and returns per room are among the strongest in the UK.
Andrew was the only member of Colliers’ Scottish team to be elevated in this year’s national promotions round. In total, 62 staff received promotions, with eight of these at director level.
Tony Horrell, UK CEO at Colliers International, said: “We are a business built on personal relationships and providing the highest standards of service to our customers is at the very core of our DNA. This year’s promotions are testament to our continued investment in learning and development and commitment to ‘growing our own’ – many of this year’s promotees joined as graduates; with some now reaching director level positions.”