UK hotel investment doubles
UK hotel investment deals are estimated to have reached more than £5.7bn in 2024, according to Savills, more than double the volume recorded in 2023.
The total marks the highest level of activity in the sector since 2018.
According to Savills, the resurgence in activity was largely driven by portfolio transactions, which accounted for £3.1bn or 55% of total investment volumes. Major portfolio deals completed during the year included Blackstone’s acquisition of Village Hotels from KSL Capital Partners for around £850m and KKR and Baupost’s purchase of 33 Marriott hotels for around £900m.
UK hotel investment deals are estimated to have reached more than £5.7bn in 2024, according to Savills, more than double the volume recorded in 2023.
The total marks the highest level of activity in the sector since 2018.
According to Savills, the resurgence in activity was largely driven by portfolio transactions, which accounted for £3.1bn or 55% of total investment volumes. Major portfolio deals completed during the year included Blackstone’s acquisition of Village Hotels from KSL Capital Partners for around £850m and KKR and Baupost’s purchase of 33 Marriott hotels for around £900m.
Portfolio volumes grew by 582% year-on-year, reflecting the subdued levels of activity seen in 2023. Even compared with the 10-year annual average, portfolio volumes in 2024 were 61% higher, highlighting the hotel market’s continued recovery.
Regional hotel volumes totalled £3.3bn last year, representing 58% of total volumes. This was 217% up on 2023 and 24% above the 10-year annual average.
London also saw significant growth, with transaction volumes rising by 105% year-on-year to £2.4bn.
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.”
