International real estate advisor Savills reports a significant increase in hotel investments in the South West region, with transactions totalling over £147 million in the first half of 2025. This marks a 95% rise compared to the full year of 2024, highlighting growing investor interest in hotels outside London and the South East.
Despite a slower start for the UK hotel investment market overall, which saw £1.59 billion in transactions in H1 2025, the South West region demonstrated remarkable resilience and growth.
In the UK overall, single asset transactions totalled £1.35 billion in H1 2025, reflecting an 8.4% year-on-year increase and standing 1.7% above the 10-year H1 average of £1.33 billion. The South West market, characterised predominantly by single asset transactions, was well positioned to benefit from this trend. Notable transactions included the sale of the Pentire Hotel, Newquay, Cornwall, to Cashmere Hotels Limited for an undisclosed guide price, and Savills sale of Plymouth’s Invicta Hotel to the owners of The Drake Hotel, off a £1.5 million guide price.
In the UK, overall portfolio asset sales were muted following an exceptionally high volume of transactions in early 2024. The only portfolio deal to take place in the South West region was the sale of the Falcon Hotel in Cornwall, Brendon Arms, and the Old Lifeboat House to a family office for an undisclosed price, managed by Savills.
James Greenslade, director, Savills Hotels capital markets, says: “The South West hotel market delivered an exceptional performance in the first half of 2025, driven by strong demand for single assets, the continuing popularity of staycations, and a growing investor interest beyond the capital. The South West is home to some of the UK’s most desirable holiday destinations and we anticipate this demand to continue throughout the remainder of the year.”