European hotel sector sees strong investor comeback

Europe's hotel sector experienced a significant rebound in 2025, with transaction volumes exceeding €27 bn. 

Hospitality

This surge, driven by improved hotel performance, investors' pivot towards "beds and sheds" (residential and industrial assets), and a more favourable debt environment, marks the strongest year for hotel investment since 2019 (€30.6 bn).
According to Cushman & Wakefield's preliminary results, the 2025 transactions involved over 1,050 hotels and 133,400 rooms, representing a 23% increase from 2024 and a 28% rise above the 10-year average. This data clearly indicates a renewed investor confidence in the sector.
The UK, Spain, and France remained the most active investment markets, collectively accounting for €13.4 bn (up 6% year-on-year) and 49% of all European activity. Spain led with the largest year-on-year increase, growing by €1.4 bn (up 52%). Among the top 10 markets, Denmark saw the strongest relative growth (up 660%), followed by the Czech Republic (up 425%) and Ireland (up 116%).
Major Portfolio Deals in 2025 included:
CapMan Real Estate's acquisition of 28 Nordic hotels from Midstar (Q1).
The €220 mln acquisition of Suncani Hvar's 10-hotel portfolio by Eagle Hills from CPI Property Group, with C&W as the selling agent (Q1).
Queensgate Investments' €776 mln sale of the Generator Hostels' portfolio to Brookfield (Q2).
The sale of the easyHotel portfolio to Tristan Capital Partners for over €400 mln (Q2).
Spring Hoteles' €430 mln acquisition of the Mare Nostrum portfolio (Q2).
The acquisition of the Dalata portfolio by Pandox and Eiendomsspar (Q4).
Several landmark single-asset transactions also contributed significantly to the volumes, such as the partial sale of Four Seasons Astir Palace Hotel in Athens (Q1), Hilton Prague Atrium (Q1), Pullman Paris Montparnasse (Q3), and Holiday Inn London Kensington High Street (Q3).
Frederic Le Fichoux, head of Hotel Transactions EMEA at Cushman & Wakefield, said: "While macroeconomic conditions remain complex, we expect this positive momentum to continue into 2026, with most investors planning to deploy more capital in the coming months. We are seeing a broad mix of buyer types, from value‑add and owner‑operators to a growing re‑entry of core capital, and we expect this diversity to sustain momentum over the year.”