Is 2025’s hotel market recalibration setting the stage for a stable 2026?
🏨 In 2025, the UK hotel market saw a shift from large portfolios to single assets, with transactions dropping from £6.6bn in 2024 to £4.3bn. Investors favored domestic over international deals due to rising costs and operational challenges. The focus moved to lifestyle and boutique hotels, with an emphasis on value-add opportunities. The trend is expected to continue into 2026, with significant portfolios like the Vastint Marriott (£500m) and PPHE (£2.2bn) being tested for market appetite.
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