Research from international real estate advisor Savills shows that UK hotel investment volumes totalled approximately £2.1 billion in the first half of 2026, representing an increase of almost £500 million compared with the same period in 2025.
According to Savills, London was the standout performer, attracting £1.4 billion of investment – 69% of the total. This was predominantly driven by sustained investor focus on single asset transactions in the capital, which accounted for approximately £1.3 billion during the period.
Savills says the strength of London’s hotel investment market reflects continued appetite for high-quality assets in the capital, supported by strong trading fundamentals, liquidity and the ongoing availability of core capital. Notable activity included Novotel London Tower Bridge and the Radisson Blu Leicester Square, which both traded for over £100 million, demonstrating the depth of demand for prime London hotel assets.
Investors also remained active in selected regional markets, particularly those offering compelling yields and strong revenue performance. Transactions including 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.
Savills notes that investor activity is selective and focused on assets in locations with clear operational fundamentals, resilient leisure and corporate demand, and the potential to capture income growth.
David Kellett, Head of Hotel Capital Markets EMEA at Savills, comments, “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.”
