London Hotel Market 2026: Occupancy, ADR, RevPAR, Pipeline and Recent Sales

London hotel market at a glance

London went into 2026 as Europe’s deepest hotel investment city. Trading in 2025 was a year of two halves: soft rates early, then a stronger second half that left full-year occupancy at 82.5% and RevPAR up 1.5% (Knight Frank, Feb. 27, 2026). Investment volumes cooled from the record portfolio-heavy 2024 year but stayed enormous by European standards — Savills puts London at £3.0 billion in 2025 and £1.4 billion in H1 2026, ahead of Paris on both measures.

Two measurement tracks matter, and they should not be mixed without labels. Knight Frank and STR/CoStar cover broad London hotel samples used for occupancy, ADR and RevPAR. Cushman & Wakefield publishes a smaller branded full-service central London sample (21 hotels) with higher ADR. PwC publishes econometric forecasts that can differ from realised Knight Frank/STR outcomes. Each figure on this page is labeled.

2025: resilient occupancy, flat rates

For full year 2025, London achieved average occupancy of 82.5%, up 1.2 percentage points year-on-year, with occupancy growth from March through November (Knight Frank). ADR fell 2.5% in the first half, then rose about 2% in the second half, finishing the year broadly in line with 2024. Full-year RevPAR grew 1.5%; H2 RevPAR was up 4.4%. London GOPPAR was £111.60, down 0.5%, with GOP margin 41.1%. Knight Frank

A separate Cushman & Wakefield sample of 21 branded full-service central London hotels reported 84% occupancy, ADR £278.9 (−0.4%) and RevPAR down 0.9%, with GOP PAR £135.5 and GOP margin 46.8% (Hospitality Net, Mar. 12, 2026). Cushman sample

July 2025 was the standout month on the CoStar/STR series: occupancy 88.6% (highest since July 2018), ADR £234.58 and RevPAR £207.93, helped by Wimbledon and Oasis concerts (Business Travel News Europe citing CoStar, Aug. 26, 2025).

Savills notes that London’s real RevPAR in 2025 remained about 5% below 2019, after 11,286 rooms opened since 2019 (+7% stock). Savills

Do not treat a single absolute 2025 London ADR/RevPAR in pounds as “the” market figure without labeling the sample: Knight Frank’s free article does not give full-year absolute ADR/RevPAR in pounds; PwC’s modelled 2025 estimates (occupancy 80.3%, ADR £192.9, RevPAR £156.1) differ from Knight Frank’s realised occupancy.

2026: modest RevPAR growth, cost pressure, still-deep liquidity

Q1 2026: London RevPAR +1.9% year-on-year; occupancy −0.9 percentage points; ADR +3.2%; GOPPAR +0.5% (Knight Frank, May 15, 2026). Knight Frank said Middle East demand softness was partly offset by domestic, U.S. and European markets, with Iran-war air connectivity still a risk into later months.

H1 2026: Savills reports London RevPAR growth of 0.6%, entirely ADR-driven, with occupancy unchanged. Savills

PwC’s Hotels Forecast 2025–2026 projects full-year 2026 London RevPAR £158.80 (+1.8%), occupancy 81.6% (+1.7 ppts), ADR £193.50 (+0.3% nominal) — forecasts, not realised results. PwC forecast

Operating headwinds called out across Knight Frank, Christie & Co and Savills: business rates revaluation from April 2026, payroll/National Insurance, and thinner ADR growth. Christie & Co also flags the newly announced overnight visitor levy as too early to size for demand impact.

Monthly / period tracker

Each row is labeled by source. Knight Frank and STR/CoStar cover broad London samples; Cushman is a smaller branded full-service central sample; PwC figures are forecasts.

Performance by hotel class

Coming soon. Dubai-style full H1 occupancy-by-class bars (luxury through midscale) are not publicly available for London in the free sources reviewed for this page. Do not invent them.

Available sourced notes:

• Knight Frank (Q1 2026): London upper-mid and upscale RevPAR +2.3%; only London segment with meaningful occupancy growth (+1.3 ppts).
• Knight Frank (FY 2025): London luxury GOPPAR −4.0% despite TRevPAR +2%.
• Cushman H2 2025 Marketbeat (UK): investment mix and price-per-room by class published at UK level — not London-only ADR/occupancy by class in the free extract used here.

We will add class bars when a free, London-specific table is published.

Hotel pipeline 2026–28

Definitions differ — label every total:

Named openings / pipeline

Landmark hotels

The Chancery Rosewood — former U.S. Embassy, Grosvenor Square; 144 all-suite; opened Sep 1, 2025; Qatari Diar / Chipperfield / Dirand (Rosewood).

Six Senses London — former Whiteleys, Queensway; 109 rooms; opened March 2026 (CoStar).

Waldorf Astoria London – Admiralty Arch — Reuben Brothers / Hilton; 114 keys. Expected to open in autumn 2026, per Hilton (17 Jun 2026); reservations are currently open from 1 March 2027.

St Regis London — former Westbury Mayfair repositioning; 195 keys expected (CoStar).

Cambridge House, Auberge Collection — Piccadilly; 102 keys; Q3 2026 (HVS).

Recent London hotel sales

Disclosed 2025–2026 trades below. Where a price is secondary, disputed or estimated, it is labeled reported/unconfirmed. Secondary or disputed prices for W London, Novotel Tower Bridge and The Other House are not used in the headline cards. FX: where CoStar stated dollars we use that; otherwise Frankfurter ECB GBPUSD on the deal/announce date (example: RIU Westminster £290m × 1.3440 on Jan. 8, 2026 ≈ $389.8m).

Q1 2026 market averages: London single-asset hotels averaged £440,000 per key; UK hotel investment £1.1 billion; HNW family offices >60% of that London investment (Knight Frank). JLL cited London hotel investment £834m in Q1 2026 in its Generali release. Not a hotel sale: Arora’s £245m purchase of 102 Petty France from Landsec is an office asset with a planned hotel conversion — excluded from operating-hotel £/key tables.

Investment volume and capital context

Buyer mix London 2024–H1 2026: owner-operators 40%, private equity 37%, Core/Core+ 16% (Savills).

Distress / refinancing: Christie & Co notes rising insolvencies and refinancing challenges bringing consensual and insolvent sales; Savills notes hotel insolvencies elevated in 2025 then moderating in H1 2026. No London property-level CMBS special-servicing list was compiled from free sources for this page.

Visitors and the overnight levy debate

• 2024 overnight visitors (GLA): about 36 million overnight visitors; 153.9 million visitor nights; ~£20 billion visitor spend cited in the GLA visitor-accommodation report.
• Serviced supply (GLA): ~174,384 rooms in 2025 vs 160,115 in 2019.
• VisitBritain / IPS (released 16 Oct 2026): 19.3 million inbound visits to London in 2025 (52% of UK inbound visits included London). 2025 figures are official statistics in development and may be revised.
• Overnight visitor levy: UK government announced (Nov. 25, 2025) that England’s mayors may introduce a levy on overnight stays (GOV.UK). Evening Standard coverage: Mayor Sadiq Khan indicated London’s rate would not exceed 5%; exact rate and start date not set as of this page. Christie & Co: too early to assess demand impact. We do not invent a revenue yield.

London vs U.S. hotels

Use only sourced pairs. Samples and methodologies differ — the same caveat as on our Dubai market page.

Top owners, operators and brokers

Public-source short list for market context (not a featured-partner roster; contact no one from this page alone):

Active buyers / owners: RIU, Criterion Capital, CDL/Copthorne, Arora Group, Generali Real Estate, PPHE, CLI Dartriver, OneIM, and (reported, disputed) Punta Na.

Active brokers: JLL Hotels (Duffey / Exler / Somers named on St Giles), HVS Hodges Ward Elliott, CBRE, Eastdil Secured, Savills Hotels, Knight Frank Hotels, Christie & Co, Alternative Real Estate Advisors, Lewis & Partners.