The volume of UK hotel investment transactions more than doubled last year compared with activity recorded in 2023, according to new data from Savills.
The company estimates UK hotel investment transactions reached £5.75bn in 2024 – the highest level of activity in the sector since 2018.
The resurgence in activity was largely driven by portfolio transactions, which grew by 582% year-on-year and accounted for 55% of activity. Portfolio volumes in 2024 were 61% higher than the 10-year average.
Regional hotel volumes totalled £3.34bn in 2024 – a 217% year-on-year increase and 24% above the 10-year annual average. Transaction volumes in London rose by 105% year-on-year to £2.40bn in 2024.
Tim Stoyle, head of UK hotels at Savills, said: “In 2024, the UK hotel market demonstrated resilience, with investment activity resurging. Private equity confidence has been central to this recovery, with significant investments made by Starwood Capital, Blackstone and KKR as well as a number of others.
“The sector’s strength is supported by solid fundamentals, including its role as a robust inflationary hedge, its resilience as an asset class, and its continued international appeal.”
