UK hotel investment hits €5.9b in 2025

In 2025, UK hotel investments are estimated to have reached £5.0 bn (€5.90 bn), according to Savills research.

London skyline - Savills

This represents a 15% decrease from the previous year, yet is still 7.8% above the ten-year average of £4.7 bn (€5.55 bn), confirming the sector's continued resilience despite global economic challenges.
The final quarter of 2025 showed a strong recovery, with investment volumes exceeding £2.0 bn (€2.36 bn), a 40% increase over Q4 2024, signalling renewed market momentum for 2026.
While portfolio transactions declined significantly to just over £750 mln (€885 mln),  down from £3.1 bn (€3.66 bn) in 2024, single asset investments surged, accounting for 85% of total volumes in 2025, a 68% year-on-year increase. This was largely driven by investors executing strategies from 2024 portfolio acquisitions and robust liquidity for smaller deals.
London significantly outpaced regional markets, attracting £3.0 bn (€3.54 bn) in investment, a 25% annual increase and 41% above its ten-year average. This performance was driven by both global and domestic investors. Conversely, regional investment volumes decreased to £2.0 bn (€2.36 bn) from £3.3 bn (€3.89 bn) in 2024, primarily due to fewer portfolio transactions.
David Kellett, head of Hotel Capital Markets - EMEA, Savills, said: "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."