- Highest hotel transaction activity since before the Covid Pandemic
- Improved hotel performance, investors’ shift toward “sheds and beds” and a more favourable debt environment fuel sharp rebound.
European hotel transaction volumes reached more than €27 billion in 2025, encompassing more than 1,050 hotels and 133,400 rooms, according to Cushman & Wakefield’s preliminary results. This is the strongest year for hotel investment since 2019 (€30.6 billion) and represents a 23% increase on 2024. Volumes also came 28% above the 10‑year average, reinforcing the clear return of investor confidence in the sector.
The UK, Spain and France remained the most active investment markets, representing €13.4 billion (up 6% year-on-year) and accounting for 49% of all European activity. Spain recorded the largest year-on-year uplift at €1.4 billion (up 52%), while the strongest relative growth among the top‑10 markets occurred in Denmark (up 660%), Czech Republic (up 425%), and Ireland (up 116%).
Major portfolio deals in 2025 included:
- CapMan Real Estate’s acquisition of 28 hotels in the Nordics from Midstar (Q1)
- The €220 million acquisition of Suncani Hvar’s 10-hotel portfolio by Eagle Hills from CPI Property Group, with C&W acting as selling agent (Q1).
- Queensgate Investments’ €776 million sale of the Generator Hostels’ portfolio to Brookfield (Q2)
- The sale of the easyHotel portfolio for over €400 million to Tristan Capital Partners (Q2)
- Spring Hoteles’ €430 million acquisition of the Mare Nostrum portfolio (Q2)
- The acquisition of the Dalata portfolio by Pandox and Eiendomsspar (Q4)
Several landmark single-asset deals also supported volumes, including 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: "The strong growth in European hotel transaction volumes in 2025 was driven by improving operational performance across most European markets, particularly in Eastern and Southern Europe. This was supported by ongoing strategic investor shifts toward ‘sheds and beds’ and a more favourable debt environment.
“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, according to our upcoming investor survey which will be published in March. 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.”
