UK hotel investment volumes exceeded £1.1bn in Q1 2026 – a 63% increase on the £680m recorded in Q1 2025, according to the latest data from Savills.
London accounted for 68% of total volume activity in Q1 led by the transaction of major ‘big box’ assets, including Park Plaza Waterloo, Marriott Grosvenor Square, Radisson Blu Leicester Square and the Grafton Street development in Mayfair.
Savills said the borrower‑friendly and competitive debt environment provides a solid foundation for further growth in transaction volumes in 2026, however, in the near term, the firm notes that risks and volatility remain, with geopolitical uncertainty slowing RevPAR growth and increased minimum wage costs still taking effect.
Thomas Emanuel, head of hospitality thought leadership, EMEA at Savills, said: “The sharp uplift in Q1 investment volumes reflects strengthening investor confidence and the continued resilience of the UK hotel market. London remains a standout performer, particularly in the large scale and luxury segments, and we expect further transactional activity as new high‑quality stock comes to market, including launches such as Bertrand’s Townhouse in Bloomsbury. With liquidity improving and new opportunities emerging, the outlook for 2026 remains encouraging.”
