In 2023, £2 billion (€2.32 billion/$2.55 billion) of U.K. hotel transactions was recorded, according to Knight Frank. The fourth quarter 2024 was the strongest quarter of the year for investment into the sector, with £615 million (€714 million/$783 million) of deals, representing 31 percent of the total annual investment activity.
Knight Frank anticipates that this encouraging increase in investor activity at the end of 2023 will continue to build momentum through 2024, with investor demand and a narrowing of seller vs. buyer expectations together with possible interest rate stabilization or even cuts, all boding well.
Nevertheless, despite a promising recovery in the opening months of 2023, the rising cost of debt, elevated operational costs and a widening mismatch between buyer and seller price expectations all contributed to a decline in investment activity. As such, total annual investment volume declined for the third consecutive year, down by 37 percent on
