Business News Round Up (30/09/2025)
Q3 2025 UK hotel investment volumes rise 28% YoY to over £1bn, driven by single asset transactions
Research from international real estate advisor Savills shows that UK hotel investment is estimated to total £1.04 billion in Q3 2025, a 28% year-on-year increase. This was driven by single asset transactions, which accounted for 92% of activity and rose almost 60% above the 10-year Q3 average, even as overall investment volumes remained 5% below long-term trends. London led the UK hotel investment market in Q3, with volumes reaching £697 million, up 42% year-on-year. According to Savills, this reflects both the capital’s large share of UK hotel stock and a rebound in investor appetite, despite ongoing operational headwinds. This positive sentiment is further shown by yield compression, with London prime yields tightening by 25 basis points across franchise assets compared to H1 2024. Domestic owner-operators have dominated UK hotel acquisitions in 2025 to date, accounting for 45% of volumes, totalling £1.2 billion.
North West business confidence takes another hit, plunging 20 points to 27%
Confidence among North West firms fell once again, in September, the latest Business Barometer from Lloyds has revealed. Business confidence levels dropped by 20 points, to 27%, the latest poll shows. Companies in the region reported lower confidence in their own business prospects month-on-month, down nine points at 44%. When taken alongside their optimism in the economy, down 31 points to nine per cent, this gives a headline confidence reading of 27%, versus 47% in August. Looking ahead to the next six months, North West businesses identified their top target areas for growth as introducing new technology (44%), evolving their offering, for example through new products or services (34%), and investing in their team, for example through training (31%). The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
UKHospitality: Almost half of Brits say local high streets are in decline
Almost half of Brits believe their local high street is worse than it was a year ago, according to a new survey by UKHospitality. The findings, published during the Labour Party Conference, reveal that the sense of high street decline is felt most significantly in suburban and rural areas. The survey of 5,000 consumers, produced by CGA by NIQ in partnership with the UK’s leading hospitality technology provider Zonal, showed that those in suburban areas (55%) believe their high street is worse than it was a year ago, with a similar response from consumers in rural areas (48%). In contrast, only 19% of consumers in city centres hold this view. UKHospitality said that these results make clear that many communities living outside of big cities feel that they are being left behind, with their high streets declining.
Scottish business confidence falls in September
Business confidence in Scotland fell 20 points during September to 39%, according to the latest Business Barometer from Bank of Scotland. Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 20 points at 45%. When taken alongside their optimism in the economy, down 18 points to 34%, this gives a headline confidence reading of 39% (vs. 59% in August). Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as investing in their team, for example through training (44%), evolving their offering, for example by launching new products or services (39%) and introducing new technology (30%). The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. Overall, UK business confidence fell 12 points in September to 42%.
https://www.digit.fyi/scottish-business-confidence-falls-in-september