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UK hoteliers have recorded a RevPAR growth of 4.8% across regional hotel properties and 1.9% in London during the first quarter of 2026, according to Knight Frank’s latest UK Hotel Dashboard.
According to the property firm, this performance marked a significant turnaround from the same period in 2025 when revenues growth remained flat and sector profits fell. Higher room rates and operational efficiencies helped businesses mitigate persistent cost pressures during the start of the year.
Gross operating profits per available room increased by 0.5% in London and 8% across the regions. London operators successfully offset a reduction in visitors from the Middle East by targeting domestic, American and European travellers.
Average daily rates in the capital grew by 3.2%, though international travel uncertainty caused a 0.9% drop in occupancy. Regional performance was driven by strong room rate gains and steady occupancy levels.
Mature hotel markets in Oxford, Edinburgh, Glasgow and Cardiff all recorded RevPAR growth of more than 5%. Specialist golf and spa hotels outperformed the wider regional market with an 8% lift in RevPAR.
In the capital, upper-mid and upscale properties recorded a 2.3% increase, making it the only London segment to grow occupancy. Hotel investment volumes reached £1.1bn during the quarter, with activity concentrated heavily in London.
High-net-worth family offices accounted for more than 60% of the capital deployed into these single asset transactions. The three largest transactions in the capital involved the sale of the St Giles Hotel, the Marriott Grosvenor Square and the Park Plaza London Waterloo.
Single asset hotels in London changed hands for an average price of £440k per room. It is thought that rising oil prices and economic uncertainty since the start of the Iran war have heightened concerns regarding cost inflation and interest rates.
Underwriting has become more stringent, which continues to influence asset pricing and deal structures outside London. Regional deal flow remains driven by portfolio break-ups and asset repositioning.
Two notable regional transactions during the quarter included the sale of non-core hotels linked to a £400m portfolio disposal by property firm Landsec. Outside the first quarter window, private capital continued to target prime leisure real estate.
The Cameron House resort at Loch Lomond changed hands for £100m, underlining sustained investor demand for high-quality destination assets.
Further activity is expected at the budget end of the market as operators restructure portfolios. Hospitality group Whitbread is considering a sale and leaseback programme for its freehold hotel properties.
UK hoteliers have recorded a RevPAR growth of 4.8% across regional hotel properties and 1.9% in London during the first quarter of 2026, according to Knight Frank’s latest UK Hotel Dashboard.
According to the property firm, this performance marked a significant turnaround from the same period in 2025 when revenues growth remained flat and sector profits fell. Higher room rates and operational efficiencies helped businesses mitigate persistent cost pressures during the start of the year.
Gross operating profits per available room increased by 0.5% in London and 8% across the regions. London operators successfully offset a reduction in visitors from the Middle East by targeting domestic, American and European travellers.
Average daily rates in the capital grew by 3.2%, though international travel uncertainty caused a 0.9% drop in occupancy. Regional performance was driven by strong room rate gains and steady occupancy levels.
Mature hotel markets in Oxford, Edinburgh, Glasgow and Cardiff all recorded RevPAR growth of more than 5%. Specialist golf and spa hotels outperformed the wider regional market with an 8% lift in RevPAR.
In the capital, upper-mid and upscale properties recorded a 2.3% increase, making it the only London segment to grow occupancy. Hotel investment volumes reached £1.1bn during the quarter, with activity concentrated heavily in London.
High-net-worth family offices accounted for more than 60% of the capital deployed into these single asset transactions. The three largest transactions in the capital involved the sale of the St Giles Hotel, the Marriott Grosvenor Square and the Park Plaza London Waterloo.
Single asset hotels in London changed hands for an average price of £440k per room. It is thought that rising oil prices and economic uncertainty since the start of the Iran war have heightened concerns regarding cost inflation and interest rates.
Underwriting has become more stringent, which continues to influence asset pricing and deal structures outside London. Regional deal flow remains driven by portfolio break-ups and asset repositioning.
Two notable regional transactions during the quarter included the sale of non-core hotels linked to a £400m portfolio disposal by property firm Landsec. Outside the first quarter window, private capital continued to target prime leisure real estate.
The Cameron House resort at Loch Lomond changed hands for £100m, underlining sustained investor demand for high-quality destination assets.
Further activity is expected at the budget end of the market as operators restructure portfolios. Hospitality group Whitbread is considering a sale and leaseback programme for its freehold hotel properties.
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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