Around £1.7bn of UK real estate was transacted by hotel investors in the first quarter of 2024, according to new data from Cushman & Wakefield. This represented a surge in activity to the tune of 138% versus Q1 2023. 

The Q1 2024 volume covered 93 properties across the UK, representing c. 7,600 rooms. Two major portfolio deals, the Edwardian UK Radisson Hotel Portfolio and the LXi REIT Travelodge Portfolio, comprised 60% of transaction volume. 

In terms of capital deployed, private buyers were the dominant force in deals completed at 69%, followed by public investors (23%), and institutional-backed capital (8%) slowly reinvigorating interest in the sector.

Across the quarter, London accounted for 60% of major deals by volume. This also included the sale of Atlas House to Integrity International Group and the iconic BT Tower to MCR Hotels – underscoring sustained interest in development projects that focus on office-to-hotel conversions, which continue to contribute a significant proportion of deal flow.

Looking forward, the market points towards a sustained positive sentiment for the sector bolstered by improved consumer confidence, alongside the projection that leisure demand for hotel nights in the UK will grow a further 6% this year.