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PRIVACY
Commercial Property

South West hotels in demand among investors in 2025

Buyers are looking outside of London and the South East, according to real estate firm Savills

Lincombe Hall Hotel & Spa in South Devon(Image: Christie & Co handout)

Millions of pounds are being spent by investors on hotels in the West of England, a new report has found.

The region has seen a "significant increase" in hotel investments in the first half of this year, according to real estate firm Savills, with transactions totalling more £147m.

It marks a 95% rise compared to the full year of 2024, highlighting growing interest in hotels outside London and the South East.

Despite a slower start for the º£½ÇÊÓÆµ hotel investment market overall, which saw £1.59bn in transactions in H1 2025, the South West region demonstrated "remarkable resilience and growth", Savills said.

In the º£½ÇÊÓÆµ overall, single asset transactions totalled £1.35bn in the first half of the year, reflecting an 8.4% year-on-year increase and standing 1.7% above the 10-year H1 average of £1.33bn.

The South West market was characterised predominantly by single asset transactions, according to Savills.

Notable transactions included the sale of the Pentire Hotel in Newquay, Cornwall, to Cashmere Hotels Limited for an undisclosed sum, and Savills sale of Plymouth’s Invicta Hotel to the owners of The Drake Hotel for a £1.5m guide price.

James Greenslade, director of Savills Hotels Capital Markets, said: “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.