UK hotel investment volumes rose to approximately £2.1bn in the first half of 2026, an increase of almost £500m compared with the same period in 2025, according to the latest data from Savills.
London was the standout performer, attracting £1.4bn of investment – 69% of total transactions – with single asset transactions accounting for approximately £1.3bn during H1.
Investors also remained active in selected regional markets, particularly those offering compelling yields and strong revenue performance. Savills said the sale of Crowne Plaza hotels in Marlow and Reading as well as the Courtyard by Marriott Oxford City Centre and hub by Premier Inn Edinburgh, highlight the continued appeal of high-performing regional hotel markets.
David Kellett, head of hotel capital markets EMEA at Savills, said: “UK hotel investment volumes in the first half of 2026 demonstrate the continued attractiveness of the sector, with London once again leading activity. Beyond London, investors are targeting resilient regional markets where trading fundamentals remain strong and yield dynamics are attractive. While the market remains selective, capital is available for the right assets in locations supported by robust demand drivers.
“The strength of activity in the first half provides an important foundation for the remainder of the year, particularly as geopolitical and political risks may impact investor decision making in the third quarter. Despite this, the UK hotel sector continues to benefit from strong operational fundamentals and a deep pool of capital, supporting a positive outlook for best-in-class assets and high performing regional markets.”
