The UK hotel investment market witnessed a marked decline in transaction volumes during H1 2025, largely attributable to a subdued level of portfolio transactions compared to 2024. Although most UK markets saw a contraction in transaction activity, standouts such as Edinburgh and Glasgow demonstrated resilience, with Edinburgh recording a 136% increase in volume—primarily driven by high-value, single-asset transactions, including the sale of the W Edinburgh to Schroders. London, while representing 64% of the overall transaction volume, experienced a sharper year-on-year decline compared to regional markets. The overall reduction in volumes for H1 may reflect extended deal timelines, with many transactions being deferred to the second half of the year. Looking ahead, transaction activity is expected to recover as pricing expectations between buyers and sellers converge and financing conditions continue to stabilise.