Overview

• UK hotel transactions reached £1.04bn in Q3 2025, up 28% year on year, with London at £697m and single‑asset deals accounting for 92% of activity, according to Savills.
• Prime yields in London tightened by 25 basis points for franchise assets, and key European markets reported broadly stable pricing with selective compression on trophy assets.
• H1 2025 European hotel investment totaled €10.4bn, above the decade average, with single‑asset volumes at €7.1bn and the single‑asset to portfolio mix reverting to roughly 70/30.
• High‑net‑worth individuals were the largest net buyers in H1, purchasing nearly €1bn more than they sold and focusing on upscale and luxury properties.
• Notable transactions included the Mare Nostrum Resort in Tenerife (€430m), Brookfield’s purchase of Generator Hostels (€776m), the Mandarin Oriental Rome (€170m), and a record price per room at the Mandarin Oriental Munich.