Hotel transaction activity across the UK increased by two-thirds in 2013, according to business advisory firm Deloitte.

Activity totalled around £800m in the second half of 2013 - 66 per cent higher compared to numbers from the second half of 2012.

The total transaction volume for 2013 passed the £3bn mark, reaching a six-year high with London dominating in terms of single asset deals, with 75 per cent of deals coming from the capital.

Notable transactions included the £90m debt disposal of the Radisson Blu Portman to London & Regional and the £88m deal between private equity firm Carlyle Group and Shiva Hotels for the redevelopment of Millennium Bridge House.

Activity outside London remained predominantly driven by distressed sales and included two disposals in York for a total of £24m (Park Inn and Ibis) as well as the acquisition of the Novotel Cardiff for £12m by the Greater Manchester Pension Fund.

Transactions for 2014 have also started strongly, with the sale of the London Edition - which closed in January - and further deals are expected to be completed early this year; including the De Vere Venues.

Sovereign wealth funds, specialised investment groups and private equity will remain the dominant buyers in 2014 and Deloitte predicts a continued influx of foreign investment into London.