UK Hospitality Marketbeat Reports

KEY TAKEAWAYS FOR Q3 2024

• Active Transaction Markets: Q3 saw active transaction markets, especially in London, Edinburgh, and smaller regional deals, with 2024 deal volumes projected to exceed £5 billion and momentum expected to continue into 2025.
• Stable Yields: Yields remained generally stable in 2024, with slight compression in top-tier deals. Anticipated interest rate cuts and increased liquidity in debt markets are expected to tighten prime yields in 2025.
• Hotel Growth: Hotel operators forecast RevPAR growth of 4.5% in London and 5.1% UK-wide over the next 12 months, with regional UK hotels outperforming London.
• Development Pipeline: Despite high construction and financing costs, nearly 7,400 hotel rooms are in the pipeline across the UK, with a 3.1% increase in room supply expected over the next 12 months.
• Demand Trends: Luxury hotels see strong demand, while value-conscious consumers pressure rates outside peak periods. Group and corporate segments show significant year-on-year improvements, driving mid-week demand and benefiting regional markets.