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Hotel demand to recover as cost-of-living crisis abates

Spending on hotels and overseas visits to the UK are still not back to their pre-COVID-19 levels. But with cost-of-living pressures set to ease around the world and consumer spending likely to outpace overall GDP growth in the UK, demand will recover over the next couple of years. Indeed, based on past relationships, our forecasts for consumer spending in the UK, US and Eurozone point to UK hotel capital value growth rising from -6% y/y at end-24 to around 5% y/y by end-26.  

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