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The UK accounted for 24% of European hotel investment volumes in the first half of 2026, making it the region’s most liquid hotel investment market, according to Savills’s latest research.
UK hotel transactions reached £2.1bn during the period, an increase of almost £500m compared with H1 2025. The investment comes despite moderating revenue growth, higher employer National Insurance contributions and business rates, alongside uncertainty over the potential introduction of a levy on overnight stays.
London continued to drive activity, recording £1.4bn of hotel transactions in H1 2026. The capital attracted buyers from Spain, Italy, Israel and Singapore, as well as domestic investors, in transactions completed between July 2025 – June 2026. Meanwhile, new investors are entering the UK market. OneIM, Punta Na and Generali each made their first UK hotel acquisitions during the period, while CDL, Criterion Capital, Fattal Hotels and the Arora Group continued to expand their portfolios, particularly in London.
However, Savills’s research notes that regional performance has been more mixed. Of the 32 UK markets analysed by Savills, 23 recorded year-on-year growth in revenue per available room (RevPAR) and only 10 were above 2019 levels in real terms. Owner-operators accounted for 40% of London hotel transaction volumes between 2024 and H1 2026, while private equity accounted for 37%. Savills said the figures reflected continued investor interest in London’s operating potential and value-add opportunities.
The research also found that the investment market is also being supported by visitor demand and limited new hotel supply. VisitBritain forecasts 44.2 million inbound visits and £33.9bn in visitor spending in 2026. At the same time, UK room supply increased by 0.6% in the 12 months to June, while rooms under construction represented 2.6% of existing stock.
David Kellett, head of hotel capital markets EMEA of Savills, said: “We expect the UK to retain its position as Europe’s leading hotel investment market, but future outperformance will be increasingly concentrated among well-located and actively managed assets. Investors with strong operating capabilities and the ability to use technology purposefully will be best positioned as revenue growth moderates and cost pressures persist.”
Thomas Emanuel, head of hospitality thought leadership, EMEA of Savills, added: “”The UK’s liquidity continues to set it apart from other European hotel investment markets. London provides an unrivalled anchor, attracting both established investors and new entrants from across the globe, while the scale of regional activity demonstrates the breadth of opportunity across the country. “As investors become more selective, the depth of the UK’s buyer pool and its proven exit market will become even more valuable. Capital remains available, but it will increasingly favour high-quality assets, locations with durable demand and opportunities where active ownership can deliver stronger performance.””
The UK accounted for 24% of European hotel investment volumes in the first half of 2026, making it the region’s most liquid hotel investment market, according to Savills’s latest research.
UK hotel transactions reached £2.1bn during the period, an increase of almost £500m compared with H1 2025. The investment comes despite moderating revenue growth, higher employer National Insurance contributions and business rates, alongside uncertainty over the potential introduction of a levy on overnight stays.
London continued to drive activity, recording £1.4bn of hotel transactions in H1 2026. The capital attracted buyers from Spain, Italy, Israel and Singapore, as well as domestic investors, in transactions completed between July 2025 – June 2026. Meanwhile, new investors are entering the UK market. OneIM, Punta Na and Generali each made their first UK hotel acquisitions during the period, while CDL, Criterion Capital, Fattal Hotels and the Arora Group continued to expand their portfolios, particularly in London.
However, Savills’s research notes that regional performance has been more mixed. Of the 32 UK markets analysed by Savills, 23 recorded year-on-year growth in revenue per available room (RevPAR) and only 10 were above 2019 levels in real terms. Owner-operators accounted for 40% of London hotel transaction volumes between 2024 and H1 2026, while private equity accounted for 37%. Savills said the figures reflected continued investor interest in London’s operating potential and value-add opportunities.
The research also found that the investment market is also being supported by visitor demand and limited new hotel supply. VisitBritain forecasts 44.2 million inbound visits and £33.9bn in visitor spending in 2026. At the same time, UK room supply increased by 0.6% in the 12 months to June, while rooms under construction represented 2.6% of existing stock.
David Kellett, head of hotel capital markets EMEA of Savills, said: “We expect the UK to retain its position as Europe’s leading hotel investment market, but future outperformance will be increasingly concentrated among well-located and actively managed assets. Investors with strong operating capabilities and the ability to use technology purposefully will be best positioned as revenue growth moderates and cost pressures persist.”
Thomas Emanuel, head of hospitality thought leadership, EMEA of Savills, added: “”The UK’s liquidity continues to set it apart from other European hotel investment markets. London provides an unrivalled anchor, attracting both established investors and new entrants from across the globe, while the scale of regional activity demonstrates the breadth of opportunity across the country. “As investors become more selective, the depth of the UK’s buyer pool and its proven exit market will become even more valuable. Capital remains available, but it will increasingly favour high-quality assets, locations with durable demand and opportunities where active ownership can deliver stronger performance.””
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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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