Savills has released its annual hotel research paper, Spotlight: UK and European Hotels 2025, giving operators and investors the consultancy's current read on trading, investment volumes and asset pricing across the UK and continental Europe.

The Spotlight series is Savills' flagship hotels output, published each year and widely used by investors, lenders and operators as a benchmark for where European hotel capital is moving. The 2025 edition lands at a point when UK and European hotel markets continue to process the aftermath of the post-pandemic recovery cycle, elevated debt costs, and a gradual reopening of transaction activity.

Why the report matters to practitioners

For hotel owners and management companies, the Spotlight paper functions less as commentary and more as a reference document. Its findings typically feed into asset valuations, lender appetite and the pricing assumptions underpinning single-asset and portfolio deals.

Operators should read it for three practical reasons:

• It frames where institutional capital is deploying across UK and European hotel real estate in 2025.
• It provides the market context that banks and alternative lenders cite when structuring hotel debt.
• It signals which European markets the consultancy considers fully priced and which still carry growth headroom.

What the series covers

Savills' UK and European hotels research tracks transaction volumes, investor demand by segment, and operational indicators such as occupancy and average daily rate across major markets. Each edition combines the consultancy's transaction data with forward-looking commentary on capital values, development pipelines and the balance between branded and independent supply.

The 2025 edition follows the established template, covering both the UK market and key continental European hotel markets.

Who should act on it

Investors weighing European hotel acquisitions this year will find the report's market-by-market framing useful for screening targets. Lenders can cross-check their own exposure assumptions against the consultancy's volume and pricing commentary. Operators with expiring management or franchise agreements may also find segment-level demand analysis relevant to renegotiation.

Savills publishes the Spotlight series free of charge through its research portal, and the 2025 hotels edition is available now for download by practitioners.

The next data point to watch is how the report's positioning compares with the year-end transaction figures, which will show whether the investment volumes the consultancy anticipates for 2025 actually materialise in completed deals.