European deal volume jumps 62% in 2024

EUROPE – European hotel investment transaction volume in 2024 surged 62% year-on-year, the highest level recorded since 2019, according to the latest HVS European Hotel Transaction Report.

Buying and selling activity was fueled by easing interest rates and abundant funding from private equity investors, most notably for large portfolios deals, giving a total transaction volume for the year of €17.4 billion, a rise of €6.7 billion on 2023 levels.

“As we move further into 2025, the availability and cost of financing will remain a focal point for hotel investors. With interest rates expected to decline further, capital markets should see a resurgence in liquidity, further boosting transaction volumes across key European markets,” said report co-author Matthias Hecht, associate director with HVS Hodges Ward Elliott. “While refinancing challenges persist, banks and alternative lenders have demonstrated greater flexibility in restructuring debt, and hotels continue to outperform other real estate classes in investor preference.”

Hotels across Europe fetched an average price of €29 million in 2024, up 5% on the previous year, with the average price per room reaching €215,300, up 9% on 2023, and around 5% higher than in 2019.

With interest rates expected to decline further, capital markets should see a resurgence in liquidity, further boosting transaction volumes across key European markets.

Matthias Hecht

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The U.K. was the most active country in terms of total asset activity by volume, with 36% of deals, followed by Spain (15%), France (12%) and Italy and Germany taking a 6% share each while London, Paris and Madrid topped the table in terms of city transactional activity.

“London retained its position as Europe’s most transacted city, with €3 billion in deals—matching the combined total of the next five most active cities,” said report co-author Gauthier Champlong, an associate at HVS Hodges Ward Elliott. “This was largely driven by major portfolio transactions, reinforcing London’s status as a key global investment hub.”

Private Equity investors proved the most active investor type in 2024, buying and selling nearly €8.6 billion-worth of assets – an increase of more than 300% on 2023, followed by owner-operators who transacted €7.8 billion-worth of properties, up 90% on the previous year.

Single asset transaction volume totaled €10.5 billion, helped by interest rate cuts across European central banks and strong hotel trading fueling investor appetite. Paris was the most liquid single asset city market in 2024, with the Olympics prompting much of its €1.4 billion activity. Some of the largest deals in the French capital involved the Mandarin Oriental, the Pullman Tour Eiffel and the Hilton Opera.

London ranked second in terms of single asset transaction volume, with deals reaching €1 billion, followed by Madrid, Venice and Athens. Notable deals in London involved the Six Senses in Bayswater and The Standard in King’s Cross.

Portfolio transaction volume totaled €6.8 billion in 2024, significantly up on 2023 levels. Around half of portfolio deals were in secondary cities, notably in Spain, France, Germany and Belgium. London recorded the highest volume with €1.9 billion in portfolio transactions, followed by Amsterdam with €240 million.