Despite ongoing geopolitical and macro-economic challenges, total investment activity is anticipated to exceed the 10-year average of \u00a34.7 billion by 7.8%, highlighting the continued resilience of the UK hotel sector and sustained investor demand.<\/p>\n
The final quarter of the year showed particular strength. According to the international real estate advisor, Q4 2025 investment volumes surpassed \u00a32.0 billion, more than 40% higher than in Q4 2024, suggesting that momentum has started to build once again and positioning the market on firmer footing heading into 2026.<\/p>\n
For the full year, portfolio transaction volumes declined, reaching just over \u00a3750 million, materially lower than the \u00a33.1 billion recorded in 2024. Yet while large-scale portfolio sales were subdued, activity in the single asset market strengthened significantly, accounting for 85% of investment volumes in 2025, up 68% year\u2011on\u2011year. The single asset market has been driven by investors executing wholesale to retail business plans from portfolio acquisitions made in 2024, supported by strong liquidity for smaller deal sizes.<\/p>\n
According to Savills, investment in London significantly outperformed the regions in 2025, attracting both global and domestic investors to deliver \u00a33.0 billion of investment volumes, a 25% year\u2011on\u2011year increase and 41% above the 10-year average. By contrast, regional market investment volumes slowed, with fewer portfolio deals contributing to a reduction in activity to \u00a32.0 billion, compared with \u00a33.3 billion in 2024.<\/p>\n
David Kellett, Head of Hotel Capital Markets – EMEA, Savills, says, “UK hotel transactions proved resilient in 2025 driven by a liquid single asset market, and the enduring appeal of London, which had its strongest year of investment volumes since 2018. Despite continuing cost challenges for hospitality businesses, we anticipate a strong year ahead in 2026 with more portfolio deals, building on the positive momentum in the fourth quarter of 2025.”<\/p>\n","protected":false},"excerpt":{"rendered":"Despite ongoing geopolitical and macro-economic challenges, total investment activity is anticipated to exceed the 10-year average of \u00a34.7…\n","protected":false},"author":2,"featured_media":352530,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[59,57,58,50,56,54,55],"class_list":["post-352529","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-kingdom","tag-gb","tag-great-britain","tag-greatbritain","tag-news","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/352529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=352529"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/352529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/352530"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=352529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=352529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=352529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}