The UK hospitality property market in numbers
The size and shape of the UK hospitality investment, trading and lending markets, the backdrop we read when we arrange finance for a hotel, pub, restaurant or holiday business, drawn from the specialist research houses and the trade bodies.
Around £5bn of UK hotels changed hands in 2025 (Savills, 2025), with prime London leased hotels yielding 4.5% to 4.75% and regional 5.25%+ (Knight Frank, Oct 2025). UK hotel occupancy held near 76.1% (STR, 2025), inbound visitors spent £33.7bn (VisitBritain, 2025), and the bridging and development loan book reached a record £13.7bn (BDLA, Q3 2025), the pool of short-term capital that funds acquisition and repositioning.
At a glance
- UK hotel investment, 2025£5bn (Savills, 2025)
- Prime hotel yield (London leased)4.5% (Knight Frank, Oct 2025)
- UK hotel occupancy76.1% (STR, 2025)
- Inbound visitor spend£33.7bn (VisitBritain, 2025)
- Bridging and development loan book£13.7bn (BDLA, Q3 2025)
- As at2025/26
How big is the UK hospitality investment market?
Around £5bn of UK hotels traded in 2025 (Savills, 2025), down about 15% on a strong 2024 but still above the ten-year average, with single-asset deals making up the bulk of activity and London drawing the majority of capital. Prime London leased budget hotels priced at 4.5% to 4.75% net initial yield on long indexed leases, with prime regional at 5.25%+ (Knight Frank, Oct 2025), the benchmark a stabilised trading business is valued against.
A hospitality asset is bought and refinanced on its trading, so the depth of the investment market and the direction of prime yields set the exit for any acquisition or reposition, and the leverage a lender will advance while trade builds.
How are UK hotels trading?
UK hotel occupancy held near 76.1% year to date in 2025 (STR, 2025), second in Europe, with regional UK RevPAR closing the year around £79 and London occupancy near 82.5% on a much higher rate base (HotStats, 2025). Underpinning demand, inbound visitors are forecast to have spent £33.7bn across 43.4m visits in 2025 (VisitBritain, 2025), rising again in 2026.
How deep is the finance market?
The UK bridging and development loan book reached a record £13.7bn (BDLA, Q3 2025), with applications at £11.7bn (BDLA, Q4 2025). That is the short-term capital that funds a hospitality acquisition, a refurbishment or a reposition before a business refinances onto a longer-term commercial mortgage on its stabilised trade.
Sources: Savills (UK Hotel Market 2025 and European Serviced Apartment Report 2026, 2025 to 2026); Knight Frank (Prime Yield Guide (October 2025) and UK Hotel Dashboard Q3 2025, 2025); HotStats (UK hotel trading performance, full-year 2025, 2025); Christie & Co (Business Outlook 2026, 2025 to 2026); CGA and AlixPartners (Hospitality Market Monitor, H1 2025); VisitBritain (Inbound tourism forecast, 2025 to 2026); BDLA (Bridging and Development Lenders Association quarterly data, Q3 to Q4 2025).
The UK hospitality property market in numbers: common questions
How much hotel property is traded in the UK each year?
Around £5bn of UK hotels traded in 2025 (Savills, 2025), down on 2024 but above the ten-year average, with London drawing the majority of capital.
What are UK hotel occupancy and yields?
UK hotel occupancy held near 76.1% in 2025 (STR, 2025), and prime London leased hotels yielded 4.5% to 4.75%, regional 5.25%+ (Knight Frank, Oct 2025).
How big is the UK bridging market?
The bridging and development loan book reached a record £13.7bn (BDLA, Q3 2025), the whole-market measure of short-term lending capacity.
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