Deal volume in the UK hotel market was substantially up in the first half of 2026, reaching GBP2.1 billion in investments transacted. “UK hotel investment volumes in the first half of 2026 demonstrate the continued attractiveness of the sector, with London once again leading activity,” commented David Kellett, Head of Hotel Capital Markets EMEA at Savills. And the optimism about the London hotel market underpins new development and planned openings in the UK capital. “Despite this, the UK hotel sector continues to benefit from strong operational fundamentals and a deep pool of capital.” In the UK’s second city, Birmingham, the hotel market is tighter, with little new inventory coming into the market in the next year.