London had an exceptionally strong quarter, accounting for 68% of total volumes. According to the international real estate advisor, activity was led by the transaction of major “big box” assets, including Park Plaza Waterloo, Marriott Grosvenor Square, Radisson Blu Leicester Square, and the Grafton Street development in Mayfair.

Savills states that capital continues to flow into the sector, with liquidity improving across both equity and debt markets and pricing expectations becoming more closely aligned. A borrower‑friendly and competitive debt environment provides a solid foundation for further growth in transaction volumes in 2026. However, in the near term, Savills notes that risks and volatility remain, with geopolitical uncertainty slowing RevPAR growth and increased minimum wage costs still taking effect.

Thomas Emanuel, Head of Hospitality Thought Leadership, EMEA at Savills, says, “The sharp uplift in Q1 investment volumes reflects strengthening investor confidence and the continued resilience of the UK hotel market. London remains a standout performer, particularly in the large scale and luxury segments, and we expect further transactional activity as new high‑quality stock comes to market, including launches such as Bertrand’s Townhouse in Bloomsbury. With liquidity improving and new opportunities emerging, the outlook for 2026 remains encouraging.”