Britain’s hotel market soared to new heights in 2024, with property deals worth £6.6 billion marking a 182 per cent increase on the previous year and exceeding the pre-pandemic peak of 2019 by 6 per cent.
According to new data from Cushman & Wakefield, a total of 327 hotels—equating to nearly 40,000 rooms—changed hands during the year, propelled largely by private equity investment.
London dominated the dealmaking, accounting for half of the total transaction value at £3.3 billion. Luxury properties proved particularly enticing; the capital’s hospitality scene saw an influx of high-end openings, including the Mandarin Oriental Mayfair and Park Hyatt London River Thames, while Hilton plans to unveil its first Waldorf Astoria in London at Admiralty Arch in 2026.
The biggest deal of 2024 was the £900 million sale of ADIA’s Marriott hotel portfolio to Amante Capital—controlled by KKR and hedge fund Baupost—underscoring investor confidence in the UK’s hospitality sector. Ed Fitch, of Cushman & Wakefield, noted that “private equity groups with huge experience” drove the surge in acquisitions, demonstrating “conviction” in British hotel assets. Analysts expect this enthusiasm to spread more widely in 2025, attracting a broader range of investors.
Outside the capital, deal activity also hit unprecedented levels, rising 224 per cent on 2023 to reach £3.3 billion. Separately, CBRE forecasts revenue per available room to increase by 3 per cent across the sector this year, underpinned by continued demand from business travellers. Despite this growth, operators remain wary of rising costs stemming from higher minimum wages and employer’s national insurance contributions due in the spring, potentially squeezing margins just as the post-pandemic recovery takes hold.