Key Highlights from the 2024 European Hotel Transactions Report
After a few turbulent years, Europe’s hotel investment market has bounced back—big time. The latest report from HVS and HVS Hodges Ward Elliott shows that 2024 marked a powerful comeback, with deal volume, hotel values, and investor confidence all rising sharply. Here’s what you need to know.
€17.4 Billion in Hotel Deals – A 62% Surge
Transaction volume soared by 62% year-on-year, reaching the highest level since 2019. The average deal size climbed to €29 million, and price per room rose 9% to over €215,000. Investors were especially active in the first half of the year, but Q4 still led the way.
Top Markets: UK Leads, Southern Europe Rises
- 🇬🇧 United Kingdom: €6.2B – by far the most active market
- 🇪🇸 Spain: €2.5B
- 🇫🇷 France: €2.0B
- 🇮🇹 Italy and 🇩🇪 Germany followed with strong performances over €1B each
London alone saw €2.9 billion in deals, reaffirming its place as Europe’s top hotel investment hub. Paris came in second at €1.5 billion, boosted by Olympics-related momentum.
Single Asset Stars & Luxury Focus
High-end urban assets were in high demand, with standout transactions including:
- Mandarin Oriental Paris – €205M (€1.5M per room)
- Hilton Paris Opera – €240M
- Six Senses London – €211M ahead of opening
- Grand Hyatt Athens – €235M
Paris, London, Venice, Athens, and Madrid all saw landmark deals.
Portfolio Deals Double
Portfolio activity doubled from 2023, reaching €6.8 billion—the strongest level since 2019. The UK again led, with massive deals like:
- Blackstone’s acquisition of 33 Village Hotels
- Starwood’s purchase of 10 Edwardian Hotels
- KKR and Baupost’s 33-hotel buy from ADIA
Who Was Buying?
- Private Equity firms were the top players: €8.6B in deals
- Owner-Operators followed with €7.8B
- Institutional Investors pulled back sharply, acting as net sellers
From a geographic standpoint:
- Europeans dominated single asset deals (82%)
- North Americans led in portfolios, especially large-scale acquisitions
Outlook for 2025
With interest rates expected to decline, more liquidity and deal activity are likely on the horizon. Urban markets like London, Paris, and Rome, as well as resort destinations in Spain, Italy, and Greece, remain highly attractive.
Expect:
- A return of institutional capital
- More value-add plays in a high-yield environment
- Continued dominance by Private Equity and Owner-Operators
The bottom line?
2024 wasn’t just a rebound – it was a relaunch of momentum. Europe’s hotel sector is back in focus, offering global investors opportunities across both luxury urban icons and high-potential resort portfolios.
