Investment into London hotels could reach around £1.5bn in the first quarter of 2020, according to research from Savills.

The real estate adviser recorded that UK hotel transactions reached £4.64bn in 2019, down 42% year-on-year, yet 11% above the ten year average.

Oversea investors were also accountable for 59% of market share, with Hong Kong being the top international investor - providing around £1bn in investment.

Half of all UK investment activity took place in London and totalled £2.31bn, while total volume of the rest of the UK totalled around £2.33bn.

“We have already noted a marked increase in investor enquiries since the General Election result and anticipate this to translate into increased activity across the UK hotel market in 2020, with several notable transactions expected to transact in the first half of the year,” said Rob Stapleton, director of Savills’ hotels team.

Tim Stoyle, head of valuations at Savills’ hotels team, added: “Looking forward to this year we expect to see more stock coming to market across all grades of accommodation but primarily driven for the budget and four-star segments.

“Demand for these assets in core locations across the rest of the UK will be underpinned by the operational performance from the growth of the staycation market, as well as the continued growth in international tourist members.”