Europe’s hotel investment market reached around 11,7 Milliarden Euro in the first half of 2026, marking a 9.5 percent decline compared to the same period in 2025, according to data published by Cushman & Wakefield. Despite the lower total volume, the market exceeded the ten-year average for the first six months of the year by nearly 20 percent, driven by large single-asset transactions and high-end properties.
Europe’s Hotel Investment Market Resilient in 2026 Despite Volume Dip
Investors from the Asia-Pacific region increased their transaction volume by 500 percent year-over-year, offsetting an 87 percent drop in capital originating from the Americas, according to Cushman & Wakefield. Frederic Le Fichoux, Head of Hotel Transactions EMEA at Cushman & Wakefield, attributes this shift to changing strategies among global investors seeking geographic diversification, alongside Europe’s relative price stability and appeal.
Large-scale transactions dominated activity, with deals valued above 100 million euros rising by 30 percent compared to the previous year. Notable single-asset sales included the 435-room Pullman Paris Tour Eiffel, the former Westminster Curio Collection Hotel in London acquired by Riu Hotels & Resorts, and the Park Hyatt Wien purchased out of the Signa Group insolvency estate.
Regional Divergence: UK Leads While Germany Declines
Performance varied significantly across European countries during the first half of 2026. The United Kingdom led the regional rankings with 3,22 Milliarden Euro in transactions, representing a 74 percent increase. Spain followed with 2,66 Milliarden Euro, up 34 percent year-over-year, while Italy recorded 1,31 Milliarden Euro and France reached 1,25 Milliarden Euro.
In contrast, Germany dropped to fifth place with 603 million euros, experiencing a 46 percent decrease in transaction volume compared to the first half of 2025. Significant German-market activity included an eleven-property portfolio sale by Aroundtown to the Ironstone Group and Ogilvy Capital, featuring several Penta Hotels.
London remained Europe’s most active urban hotel market, recording 2,3 Milliarden Euro across 24 properties, outperforming Paris, Vienna, and Madrid. The British capital alone accounted for ten separate transactions valued at over 100 million euros each.
Operational Growth and Pricing Trends
European hotel supply expanded by 2.9 percent in room count, with Southern and Eastern Europe posting the strongest development figures. The average revenue per available room (RevPAR) across the continent rose by 3 percent to 101 euros, led by a 6 percent RevPAR increase in Eastern Europe. On a city level, Milan and Budapest recorded the highest revenue growth at 24 percent and 15 percent, respectively.
Across all hotel classes, the average price per sold room grew by 9 percent to reach 228.416 Euro. Private investors drove market liquidity, accounting for 54 percent of acquisitions and 46 percent of disposals, with half of all invested capital targeting upper upscale and upscale properties.
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