UK hotel investment activity rose 210% in H1 2024 to £3.9bn – the highest half year level since 2015, according to the latest data from Cushman & Wakefield.
The company said the surge in activity was driven by several major private equity portfolio deals, which accounted for almost two-thirds of total investment.
Significant portfolio sales included the Radisson Edwardian Portfolio (10 hotels), Project Cobalt (LXi REIT Travelodge Portfolio, 66 hotels), Project Leopard (Landsec Accor Portfolio, 21 hotels) and the Village Hotels Portfolio (33 hotels).
London accounted for 55% of major deals by volume and American and European investors contributed more than 70% of the total volume.
Yields generally remained stable in the first half of 2024, with slight compression for top-tier deals in high-barrier-to-entry markets.
Cushman & Wakefield said further deal activity is expected in the second half of the year, with full-year volumes expected to surpass £5bn.
Ed Fitch, head of hospitality UK and Ireland at Cushman & Wakefield, said: “Hospitality continues to prove itself a robust performer, with strong topline growth and easing cost pressures, and this in turn continues to attract investor interest. The sector is on track to record very healthy transaction volumes in 2024, driven by a handful of key portfolio deals which have been hard to come by in recent years.
“There is a great depth of capital waiting to get into the hospitality sector which Cushman & Wakefield expects to sustain deal momentum throughout the year and into 2025 as more product which meets the criteria of that capital comes to market.”
