According to data analysis from Cushman & Wakefield, European hotel transactions surpassed €22.4bn in 2024, marking a 37% increase from the preceding year and the highest volume recorded since 2019. This surge was largely driven by increased activity in the UK, Spain, and France, accounting for 59% of European volumes at €13.2bn.

The UK emerged as the leading destination for investment, recording €7.8bn in deals, a striking 197% increase from 2023. Significant transactions included sales of portfolio deals from ADIA’s Marriott, Village Hotels, Radisson Edwardian, and Landsec’s Accor. Other markets with notable growth in investment volumes compared to 2023 included Greece (+294%), Norway (+248%), and Ireland (+218%).

On a city level, London led the pack with €4.0bn worth of transactions, followed by Paris (€1.6bn) and Dublin (€0.6bn). Jon Hubbard, Head of EMEA Hospitality at Cushman & Wakefield, highlighted the continued appeal of the European hotel market to investors, given the steady transactional activity expected in 2025 due to rising debt liquidity and healthy hotel performances.

Interestingly, Europe’s average transaction price per room in the second half of 2024 was €163,000, a decrease from €188,000 during the same period in 2023. Changes in the nature of transactions, such as class and location, influenced this decline rather than a continuous discount trend. The analysis suggests that yields remained stable throughout 2024, with values sustained by growing income and high entry barriers for top-end market players.

Investor sentiment, declining financing costs, and the return of core investors in 2025 are projected to exert downward pressure on yields, especially for prime locations and assets. Private capital dominated the investment landscape in 2024, accounting for 45% of the deals, a 45% increase from 2023. Meanwhile, institutional investment and public finance represented 39% and 13% of transactions.

The premium end of the market continued to captivate investors, with Luxury or Upper Upscale hotels constituting 42% of the volumes transacted in 2024. These figures underline the European hotel market’s robust health and growth potential, driven by key markets and investor confidence.