UK hotel investment transactions are estimated to have reached £5.75 billion in 2024, according to data from Savills.
Transactions more than doubled from 2023 levels, with the resurgence in activity largely driven by portfolio transactions - such as Blackstone’s acquisition of Village Hotel and KKR and Baupost’s purchase of 33 Marriott hotels - which accounted for 55 percent of total investment volumes. Portfolio volumes grew by 582 per cent year-on-year, and compared to the 10-year annual average, were 61 per cent higher.
Regional hotel volumes totalled £3.34 billion in 2024, representing 58 per cent of total volumes, marking a 217 per cent year-on-year increase and 24 per cent growth above the 10-year annual average.
London also saw significant growth, with transaction volumes rising by 105 per cent year-on-year to £2.40 billion in 2024.
What they said
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.”