Hotel Valuations: Blending Real Estate with Hospitality Knowledge
The UK hotel market is one of the most complex and rewarding niches in operational real estate. For valuation surveyors (MRICS/Registered Valuers), hotels present unique challenges because their value is tied as much to hospitality performance as to the bricks and mortar.
In this edition of our Industry Insight Series, we explore what surveyors need to know about hotel valuations in the UK. The skills that make candidates stand out, where the market is hottest, and which firms are expanding their hotel teams in 2025.
Why hotel valuations are unique
Unlike offices or retail, hotels are valued as going-concern businesses. Key drivers include:
Occupancy rates
Average Daily Rate (ADR)
Revenue per Available Room (RevPAR)
Strength of the brand and management contract
Food & Beverage and other ancillary revenues
Valuers rely heavily on the profit method and discounted cash flow (DCF) models, combining property expertise with operational insight. The UK hotel forecasts by PwC emphasise the need to understand hotel performance dynamics (RevPAR, occupancy, brand strength) alongside real estate fundamentals.
Who thrives in this sector?
The most successful hotel valuers typically come from:
Commercial valuation backgrounds – MRICS surveyors who started in offices, retail, or leisure and then specialised in hotels.
Hospitality operations or finance – hoteliers, asset managers, or finance professionals who bring operational know-how into real estate.
Investment and banking – analysts with DCF modelling skills who adapt to hotel-specific valuation.
Recent hires, such as Cushman & Wakefield’s recruitment of hotel brokers and hospitality executives, show how diverse backgrounds can transition effectively into hotel valuation.
Where is the UK hotel activity?
According to Cushman & Wakefield’s UK Hospitality Marketbeat Q2 2025, £1.6bn worth of hotels traded in H1 2025, spanning 110 hotels and nearly 11,000 keys.
London remains the largest market (£3.3bn transactions in 2024).
Edinburgh and Manchester attract strong international and domestic demand.
South West and West Midlands saw the fastest YoY growth in early 2025.
The UK also leads Europe in new hotel development, with 282 projects (39,700 rooms) in the pipeline as of mid-2025 (Hospitality Investor).
Market outlook: growth or stability?
2024 was a record year for hotel transactions, with £5–6bn of deals.
2025 started more cautiously, but fundamentals remain strong:
PwC forecasts UK RevPAR growth of +1.9% in 2025, and +3% in London.
Weaker sterling is expected to boost inbound tourism, supporting occupancy.
Cost pressures (wages, utilities) continue, pushing operators toward efficiency.
Overall, the sector is stable-to-growing, with strong investor appetite for single-asset deals as portfolios stabilise.
Firms leading hotel valuations
Hotel valuation is supported by a wide ecosystem of advisors:
Large consultancies with dedicated hotel & leisure desks
Specialist hospitality advisors, such as Colliers’ Hotels Agency, which markets 200 UK hotels at any given time
Niche international experts like HVS and PKF, who provide consultancy, feasibility and valuation across UK and Europe
In early 2025, Cushman & Wakefield also expanded its UK hospitality platform, adding senior hires to capitalise on market growth
Candidate insights: what employers want
Employers are looking for surveyors who can combine valuation rigour with hospitality fluency. A strong hotel valuer CV typically includes:
MRICS + Registered Valuer status
Experience in profit-method and going-concern valuations
Advanced DCF modelling skills
Knowledge of hotel operations and finance (USALI, RevPAR, ADR)
Clear, Red Book-compliant reporting
Client-facing and business development experience
International exposure is not essential, but it’s increasingly valued as many portfolios are cross-border.
Hotel valuation surveyors are expected to be fluent in:
Excel and Argus Enterprise for cash flow analysis
Market databases such as STR and HotStats for benchmarking
Power BI/Tableau for data visualisation
Familiarity with revenue management systems (Opera PMS, Duetto) is a growing advantage
ESG and sustainability analysis, as new RICS standards (2025+) will embed ESG into valuations
Soft skills matter too. Surveyors must communicate clearly with clients and interpret financial and operational data in plain language.
Final word
Hotel valuation sits at the intersection of real estate and hospitality. It’s a challenging niche, but also one of the most rewarding for surveyors who want to blend analytical rigour with a dynamic, global industry.
For MRICS surveyors, specialising in hotels can open doors to high-value transactions, international opportunities, and accelerated career progression.
At SONDR, we understand the nuances of operational real estate – from hotels to healthcare – and we know which firms are growing their teams in 2025.
If you’re a surveyor ready to explore hotel valuations, get in touch with us today.