Investment volumes in UK hotels rallied in late 2025.
However, it wasn’t enough to reverse a year on year decline.
According to Savills industry data, it estimates UK hotel investment reached £5bn in 2025.
This is a 15% drop on 2024.
However, it says it is generally in line with the market trend.
It is forecast to surpass the ten-year average of £4.7bn.
This highlights the market’s resilience, it says.
The last quarter of 2025 was strong with more than £2bn worth of business.
This was about 40% up on Q4 2024.
David Kellett, head of hotel capital markets – EMEA, Savills, said: “UK hotel transactions proved resilient driven by a liquid single asset market, and the enduring appeal of London.”
“Despite continuing cost challenges for hospitality businesses, we anticipate a strong year ahead in 2026.”
