£233
London RevPAR (Knight Frank / HotStats)
Market data
UK hotel market, yields and deals
The trading, yield and transaction data we use to structure hotel finance, drawn from the specialist research houses and attributed throughout.
Written and reviewed by Matt Lenzie Founder & Principal Broker · 25 years arranging hotel finance · Reviewed June 2026
£98
Regional UK RevPAR (Knight Frank / HotStats)
£3.01bn
UK investment, YTD Q3 2025 (Savills)
£142,019/room
UK avg price per room (Cushman & Wakefield)
This is the market evidence we use when we structure and place hotel finance. Trading figures, investment yields, operator estates and recent deals all feed how a lender sizes a facility, and how we argue your case. Every figure below carries its source and date. Hotel trading KPIs are benchmarked by London and by Regional UK rather than town by town, and capital-markets figures are point-in-time.
Trading
UK hotel trading snapshot
London and Regional UK benchmark KPIs, Knight Frank / HotStats Q3 2025.
| Metric | London | Regional UK |
|---|---|---|
| Occupancy | 87.5% | 82.8% |
| ADR (average daily rate) | £266 | £118 |
| RevPAR | £233 | £98 |
| GOPPAR | £133 | £54 |
| Avg price per room (going concern) | £315,000/room | £129,000/room |
Source: Knight Frank / HotStats UK Hotel Dashboard, Q3 2025 (benchmark sample, skewed to branded upscale stock); price per room Knight Frank, Sept YTD 2025. PwC forecasts London RevPAR up 1.8% and regional RevPAR up 1.5% for 2026.
Investment yields
UK hotel exit yields by segment and structure
How the market prices hotel assets, from the firms that publish hotel yields.
| Segment | Geography | Structure | Yield | Source |
|---|---|---|---|---|
| Budget and limited-service | London | Leased (20yr, 5-yearly indexed) | 4.50 to 4.75% | Knight Frank, Oct 2025 |
| Budget and limited-service | Regional UK | Leased (20yr, 5-yearly indexed) | 5.00 to 5.25% | Knight Frank, Oct 2025 |
| Prime full-service | London | Core leased / fixed income | around 4.50% | Savills / CBRE, Q4 2024 |
| Prime full-service | London | Vacant possession / operational | around 4.2 to 4.7% | CBRE, H1 2025 |
| Prime | London | Management / franchise (HMA) | 5.0 to 6.0% | Cushman & Wakefield, H1 2025 |
| Prime and secondary | Regional UK | Operational | around 6.0 to 6.5% | CBRE, H1 2025 |
Trend. London prime yields moved out around 33 bps through 2024 (CBRE), then hardened around 25 bps through 2025 (Savills). Further compression is expected into 2026, led by London core-leased stock, as debt costs ease (Savills, JLL).
Sources: Knight Frank Investment Yield Guide, October 2025; Savills, Spotlight: UK Hotel Market 2025; CBRE European Real Estate Market Outlook 2025 (Hotels); Cushman & Wakefield UK Hospitality Marketbeat, H1 2025; JLL Global Hotel Investment Outlook 2025 and 2026. Leased rows are exact (Knight Frank); operational and regional rows are transaction-derived market commentary and are indicative. Yields are not an offer of finance.
Capital markets
Portfolio versus single-asset activity
| Measure | 2024 | 2025 |
|---|---|---|
| Total UK hotel investment | £5.7bn (highest since 2018) | ~£5.0bn |
| Portfolio share of volume | 54% | around 15% |
| Single-asset share of volume | ~46% | 85% (single-asset led) |
2024 was portfolio-driven and US private equity heavy; 2025 swung to single-asset deals, led by London (Q3 2025 London volume £697m, up 42% year on year).
Source: Savills, UK Hotel Market 2025; Knight Frank, Jan 2025 review.
Operators
Major UK hotel groups
The brands and groups whose covenants shape how lenders read a hotel.
| Group | UK estate | Segment | Source |
|---|---|---|---|
| Premier Inn (Whitbread) | ~855 hotels, ~85,500 rooms | Budget | Whitbread FY24/25 |
| Travelodge | 615 hotels, 47,000+ rooms | Budget | Travelodge / CoStar, 2025 |
| IHG (Holiday Inn, Crowne Plaza) | 363 hotels open, 33 in pipeline | Midscale to upscale | IHG plc, Jun 2025 |
| Dalata (Clayton & Maldron) | 56 hotels, 12,000+ rooms group-wide | Midscale to upscale | Dalata Hotel Group, 2025 |
| Village Hotels | 33 to 34 hotels | Upscale leisure | Blackstone / Village Hotels, 2024/25 |
| Britannia Hotels | 63 hotels | Budget to midscale | Britannia Hotels, 2025 |
| Best Western GB | 200+ hotels (consortium) | Midscale | Best Western GB, 2025/26 |
| Macdonald Hotels | ~29 hotels | Upscale & resort | Macdonald Hotels, 2025 |
| Z Hotels | ~14 to 15 hotels | Compact / lifestyle | Z Hotels / trade press, 2024/25 |
| citizenM | London & Glasgow (37 globally) | Lifestyle | Marriott / company, 2025 |
| Hilton (UK) | ~45 to 47 hotels in England (estimate) | Midscale to luxury | Aggregator counts, 2025 (estimate) |
Estate sizes are point-in-time from operator results and trade sources; Hilton UK is an aggregator estimate. Brand and franchise covenants materially affect lender appetite and leverage.
Transactions
Notable UK hotel deals, 2024 to 2026
Recent portfolio and single-asset transactions, a read on appetite and pricing.
| Asset / portfolio | Price | Buyer | Detail | Date |
|---|---|---|---|---|
| 33 Marriott-branded UK hotels | ~£900m | KKR & Baupost (Amante Capital) | 33 hotels | Dec 2024 |
| Village Hotels | ~£850m | Blackstone | 33 hotels | Jun 2024 |
| Atlas Hotels portfolio | £575m | London & Regional | 47 hotels (Holiday Inn Express + Hampton) | 2024 |
| easyHotel | ~€400m | Tristan Capital Partners | Brand and platform | Jun 2025 |
| Riu Plaza London The Westminster | £290m (~£587k/key) | RIU Hotels & Resorts | 494 rooms | 2025 |
| Three central-London Marriott extended-stay hotels | £230m | Undisclosed | 3 hotels | 2024/25 |
| St Giles London Hotel | £220m (~£300k/key) | Criterion Capital | 732 rooms | 2025 |
| 66 Travelodge hotels (ex-LXi REIT) | £210m | Travelodge (GoldenTree) | 66 hotels | Jan/Feb 2024 |
| Radisson Blu Leicester Square | ~£120m (est.) | CLI Dartriver | 127 rooms | Apr 2026 |
| Campanile Hotels portfolio | Undisclosed | Travelodge | 9 hotels, 951 rooms | Apr 2025 |
| W Edinburgh | Undisclosed | Schroders Capital | 214 rooms | H1 2025 |
| Leonardo London Heathrow | Undisclosed | Fattal Hotel Group | 230 rooms | H1 2025 |
Sources: Savills, Knight Frank, CBRE, JLL, Cushman & Wakefield and trade press (CoStar, The Caterer). Several single-asset prices were undisclosed.
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