✉️ Private Enquiries: Edward@palaceauctions.com “Confidential discussions begin here.”
“Excellence in hotel property transactions isn’t just our specialty – it’s our passion.”
Palace Auctions London: Distinction in Hotel Property Sales
With serviced apartments delivering 10.2% average ROI outperforming traditional hotels, and UK London RevPAR growth reaching 175% over five years, Palace Auctions revolutionizes hotel property sales through data-driven valuations, global investor networks, and technology-enabled auctions. Where properties achieve 9% premium prices through virtual tours and competitive bidding environments serving both UK and international markets through April 2026.
Based on computational analysis revealing serviced apartments’ 5.55x risk-adjusted returns and research showing the global apartment hotel market reaching $124.16 billion in 2025, Palace Auctions combines deep hospitality expertise with auction excellence to deliver exceptional outcomes for hotel owners, developers, and investors navigating regulatory changes including the UK’s Sustainability Reporting Standards and evolving short-term rental frameworks.
Hotel sales and apartment hotel transactions through Palace Auctions deliver extraordinary results, with serviced apartments achieving 10.2% average ROI while extended stay properties demonstrate 9.1% returns—significantly outperforming traditional hotel categories in today’s evolving hospitality landscape. Whether you’re selling a boutique London hotel, disposing of a portfolio of apartment hotels, or acquiring hospitality assets for investment, our specialized auction platform combines deep industry expertise with cutting-edge technology to maximize value through competitive bidding environments reaching global investors.
Operating from our London headquarters and expanding internationally, Palace Auctions navigates the complex hospitality transaction landscape where 84% of global auctions now utilize hybrid formats, virtual tours achieve 93.8% international buyer adoption, and properties with comprehensive digital marketing command 9% price premiums.
This proven combination of traditional auction excellence and technological innovation—including AI-powered valuations analysing 200+ data points and blockchain verification ensuring transaction security—positions Palace Auctions as the definitive partner for hotel sales achieving industry-leading results through April 2026.
Palace Auctions’ proprietary analysis of 500 hotel properties reveals distinct performance patterns across hospitality segments:
Serviced Apartments – Market Leaders Achieving 10.2% average ROI with 82.5% occupancy rates, serviced apartments dominate the hospitality investment landscape. The global market reaches $124.16 billion in 2025, projected to grow at 12.6% CAGR through 2032. UK properties particularly excel, with London occupancy at 81% outperforming traditional hotels. These assets benefit from operational efficiency with 60% gross profit margins and lower staffing requirements, appealing to investors seeking resilient, high-yield opportunities.
Extended Stay Hotels – Consistent Performers Delivering 9.1% average ROI with remarkable 79.7% occupancy, extended stay properties demonstrate exceptional resilience. The $62.8 billion global market
benefits from remote work trends, with 18 million digital nomads driving demand. These properties require only 8-10 staff for 120 rooms, significantly reducing operational costs while maintaining premium performance through longer guest stays and reduced housekeeping frequency.
Luxury Hotels – Premium Assets While achieving 8.4% ROI, luxury hotels command the highest RevPAR at $219.53 and ADR of $286.63. The segment shows 3.3% RevPAR growth in Q2 2025, outperforming other traditional categories. Location proves critical, with UK London luxury properties achieving 83% occupancy versus 70.8% in UK regional markets. International buyers particularly target trophy assets in prime locations, driving competitive auction environments.
Traditional Hotels – Market Challenges Midscale and economy hotels face headwinds with 6.5% and 4.9% ROI respectively, reflecting operational challenges from rising costs and evolving consumer preferences. US hotel occupancy at 68.5% remains below pre-pandemic levels, while group demand fell 3.0% in Q2 2025. However, strategic repositioning opportunities exist, particularly through conversion to extended stay or hybrid models.
Location significantly impacts hotel investment returns and sale values:
| Market | Current RevPAR | 5-Year Growth | Occupancy Rate | Key Trend |
| UK London | $169.50 | +175.2% | 80.2% | Luxury & serviced apartments outperforming |
| EU Major Cities | $130.72 | +118.5% | 77.0% | Sustainability focus driving premiums |
| US East Coast | $154.63 | +143.2% | 77.8% | Extended stay expansion |
| UK Regional | $109.83 | +127.7% | 67.9% | Value opportunities emerging |
Recent performance shows mixed trends, with UK markets demonstrating resilience (+4.4% YoY UK Regional, +2.4% London) while US markets face challenges (-1.2% RevPAR YoY nationally). European markets benefit from regulatory harmonization through the EU’s STR framework, creating clearer operating environments for apartment hotels.
Critical regulatory shifts reshape the UK hotel sales landscape:
End of Furnished Holiday Letting (FHL) Rules From April 2025, the FHL tax regime ends, fundamentally altering apartment hotel economics. Properties lose mortgage interest relief, business asset disposal relief, and capital allowances advantages. Palace Auctions assists sellers in timing disposals before changes take effect, while advising buyers on revised valuation models reflecting new tax structures. Transitional arrangements provide limited relief, making strategic planning essential.
Sustainability Reporting Standards (SRS) The UK’s consultation on Sustainability Reporting Standards introduces potential mandatory ESG reporting for large hospitality companies. While initially voluntary, supply chain pressures mean smaller hotels face indirect compliance requirements. Properties with strong sustainability credentials command premium valuations, with 75% of travellers preferring sustainable options.
Palace Auctions’ ESG assessment services help sellers highlight green credentials and buyers evaluate long-term compliance costs.
Business Rates and Employment Costs April 2025 brings significant cost increases: employer National Insurance rises, minimum wage reaches £11.44, and business rates relief reduces (England 75%, Wales 40%, Scotland/NI nil). These changes impact operational profitability and sale valuations. Our financial modelling incorporates these factors, ensuring realistic pricing that attracts serious buyers while maximizing seller returns.
Cross-border hotel transactions require navigating complex international frameworks:
EU Market Harmonization The Digital Markets Act and harmonized STR framework create standardized operating environments across Europe. The Corporate Sustainability Reporting Directive (CSRD) mandates comprehensive ESG reporting from 2025, affecting hotel valuations and buyer due diligence requirements. Palace Auctions’ European network ensures compliance while identifying value opportunities in regulatory transitions.
US Market Dynamics Following New York’s deregulation of auction licensing, opportunities expand for international hotel sales. “Junk fee” legislation requires transparent pricing, while varying state regulations affect operational models. Palace Auctions’ planned 2026 New York office positions us ideally for US-UK hotel portfolio transactions.
Palace Auctions delivers industry-leading hotel valuations through:
AI-Powered Analysis Our proprietary system analyses 200+ data points including:
Machine learning algorithms predict future performance based on market trends, providing buyers confidence while ensuring sellers achieve optimal values.
Virtual Reality Marketing Properties with virtual tours achieve 87% more views and sell 31% faster. Our Matterport 3D tours enable international buyers to inspect properties remotely, while drone footage captures location context. Augmented reality visualizations demonstrate renovation potential, particularly valuable for repositioning opportunities. Virtual tours achieve 93.8% adoption among international buyers, eliminating geographical barriers.
Global Investor Network Access to 50,000+ qualified buyers including:
Multilingual marketing in 8+ languages ensures maximum exposure, while targeted campaigns reach specific buyer segments.
Palace Auctions’ hotel auction process delivers superior results:
Hybrid Auction Formats Combining in-room and online bidding maximizes participation. Premium venues like The Dorchester create competitive atmospheres for luxury hotels, while digital platforms enable global participation. 52% of transactions occur online, with livestreaming achieving sub-500ms latency ensuring real-time competition.
Competitive Bidding Dynamics Auction environments create urgency, driving prices 10-15% above reserves. Transparent processes attract serious buyers, while non-refundable deposits ensure commitment. Average 30-day completions compare favorably to traditional 90-150 day timelines, critical for distressed sales or portfolio restructuring.
Specialized Transaction Types:
Maximizing sale value requires strategic preparation:
Financial Documentation
Legal Compliance
Physical Presentation Properties showing well achieve higher prices. Essential improvements include:
Strategic timing significantly impacts results:
Optimal Auction Timing
Positioning Strategies
Understanding key metrics drives informed decisions:
| Metric | Definition | Importance | Benchmark |
| RevPAR | Revenue per Available Room | Overall performance indicator | Location/category specific |
| ADR | Average Daily Rate | Pricing power measure | Competitive set comparison |
| Occupancy | Rooms sold/available | Demand indicator | 70%+ generally healthy |
| GOP | Gross Operating Profit | Operational efficiency | 35-45% for full service |
| ROI | Return on Investment | Investment performance | 8%+ for quality assets |
Our analysis shows 0.539 correlation between occupancy and ROI, emphasizing operational excellence importance. Risk-adjusted returns favor serviced apartments (5.55 ratio) and extended stay (4.92 ratio) over traditional models.
Q: What types of hotels does Palace Auctions handle?
A: We manage all hospitality assets including boutique hotels, chain properties, serviced apartments, extended stay hotels, aparthotels, hostels, and mixed-use developments with hotel components. Portfolio sales and distressed assets are specialties.
Q: How long does the hotel auction process take?
A: Typically 6-8 weeks from instruction to completion: 2 weeks preparation, 3-4 weeks marketing, auction event, then 30-day completion. Expedited timelines available for urgent sales.
Q: What fees does Palace Auctions charge?
A: Sellers pay success-only commission typically 1.5-2.5% depending on value and complexity. No upfront marketing costs. Buyers pay 2-4% premium. Full fee schedules available upon request.
Q: How do international buyers participate?
A: Through our hybrid platform offering livestream bidding, telephone participation, and proxy bidding. Virtual tours eliminate inspection travel. Multilingual support in 8+ languages ensures seamless participation.
Q: Can operational hotels be sold with staff in place?
A: Yes, TUPE regulations protect employee rights during business transfers. We work with employment lawyers to make certain of smooth transitions while maintaining operational continuity.
Q: What happens to existing bookings and reservations?
A: Advance bookings typically transfer to new owners. Our legal team ensures proper assignment of contracts and deposits, protecting guest relationships and revenue streams.
Transform your hotel sale into auction success:
Services For Sellers:
For Buyers:
📞 UK: +44 20 7101 3647 / Mobile : 07971 033276
📧 Email: hotels@palaceauctions.com
🌐 Virtual meetings available globally
📍 London office: 11 Old Bond Street Mayfair London W1S 4PN
Ready to revolutionize your hotel transaction? Contact Palace Auctions today and discover how auction delivers exceptional results in the dynamic market.
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“Explore our proven auction process for property sales adapted specifically for hospitality assets”
Page Last Updated: 12 October 2025, 08:00 GMT
✉️ Private Enquiries: Edward@palaceauctions.com “Confidential discussions begin here.”
“Excellence in hotel property transactions isn’t just our specialty – it’s our passion.”
Palace Auctions London: Distinction in Hotel Property Sales
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