Hotel transactions fell by a third last year as the rising cost of borrowing and wider economic conditions impacted on the market.

The 24 deals across Scotland worth £149 million (involving transactions of over £1 million) represented a 34% fall on 2021 (£226m).

The UK-wide hotel market saw investment fall 27.5% year on year. Savills, which compiled the figures, said Scottish hotel transactions accounted for about 5% of overall UK volumes (£3 billion).

Domestic UK buyers represented approximately 72% of the total.

Transactions in Scotland included: Premier Inn Glasgow, Buchanan Galleries; Fonab Castle, Pitlochry and the former Park Inn Glasgow.

Steven Fyfe, hotel capital markets director at Savills Scotland, said: “While the second half of the year was challenging, in terms of transactional volumes, H2 was marginally stronger than H1 , demonstrating the ability to complete transactions in a difficult market. 

“We are seeing stability starting to return to the market as we begin the new year with a number of sale processes underway.

“In terms of investment volumes, we expect a strong start to the year, with year-end volumes anticipated to reach £200 million.”