According to MarketBeat Europe Hospitality by Cushman & Wakefield, European hotel investment volumes amounted in the first half of 2026 to EUR 11.7 billion, equivalent to a decline of 9.5% compared to the same period last year. Compared to the 10-year average of the first six months of each month, an increase of almost 20% can be noted.
The above-average activity in a long-term comparison was due to the high-profile, well-known single asset transactions, including:
- The sale of the 435-room Pullman Paris Tour Eiffel by an investment fund of Morgan Stanley Real Estate Investing (MSREI) and QuinSpark Investment Partners (QuinSpark). The buyer is a consortium of investors led by Batipart Immo Europe.
- The acquisition of the former Westminster Curio Collection Hotel in London by the Spanish hotel group Riu Hotels & Resorts, which is also the largest single-asset transaction in London since 2021. The 464-room hotel is now operated as the Hotel Riu Plaza London The Westminster.
- The purchase of Park Hyatt Vienna from the insolvency estate of the Signa Group by a private investor.
Portfolio activities remained concentrated in the United Kingdom, especially with "The Other House Portfolio" consisting of three properties with the buyer One Investment Management from the UAE as well as various smaller portfolios in Spain with predominantly Spanish buyers.
In Germany, the sale of a portfolio from Aroundtown to the Ironstone Group / Ogilvy Capital from the USA and Great Britain was particularly important in the statistics. The total of eleven properties are mainly located in Germany (including Penta Hotels in Leipzig and Bremen, for example), but also in Belgium and France.
Frederic Le Fichoux, Head of Hotel Transactions EMEA at Cushman & Wakefield, commented: "What we have seen in the first half of 2026 is primarily a highly selective market and not a market that is weakening. While fewer assets are being traded overall, those that are and have been on the market are premium hotels in good locations in the higher price segment."
Investors from Asia-Pacific dominated and increased their investment volume sixfold
Transaction volume from investors from the Asia-Pacific region grew by 500% year-on-year, helping to offset declines from the Americas region (minus 87%), among other things.
"The increase in activity from Asia Pacific is largely due to a reassessment of the investment strategies of global investors and a desire for diversification, driven mainly by geopolitical reasons. Europe has benefited significantly from this," Le Fichoux said. "Europe is considered cheap and stable compared to other parts of the world. Another factor is that investment in European hotels from Asia-Pacific has declined significantly during the pandemic and subsequent years, so we are now seeing a natural recovery as well as a new investor conviction for European hotel products."
Significantly more large-volume transactions
The number of transactions in the order of €100 million increased by 30% year-on-year. It included both individual properties and larger portfolios. "Hotel investors are focusing on upscale and luxury hotels that have seen strong performance growth, and these assets are often trading above €100 million," Le Fichoux said. "Competition is increasing thanks to better access to capital. We are seeing a veritable wave of non-traditional investors, both institutional and private, who want to enter the sector and make a splash with prime/trophy assets."
The average price per room sold rose by 9% year-on-year across all hotel classes to 228,416 euros, with private investors continuing to dominate activity on both the buyer and seller side. 54% of purchases and 46% of sales were for private investors. Half of the total invested volume in the first half of 2026 went into so-called "upper upscale" and "upscale" hotels.
London is driving a resurgent British market – Germany in fifth place in the statistics with 603 million euros
With 3.22 billion euros, an increase of 74% year-on-year, the United Kingdom leads the country statistics in the first six months of 2026, followed by Spain with 2.66 billion euros (up 34%). After Italy (3rd place with 1.31 billion, down 18% on the previous year's volume) and France (4th place with 1.25 billion euros, slight increase of 8%), Germany follows in fifth place with 603 million euros, a large gap of 46% compared to the same period last year.
Frederic Le Fichoux continues on the regional preferences of investors: "London is the magnet and an important strategic location. In the London city region alone, we have already been able to list ten single asset and portfolio transactions with a volume of over EUR 100 million this year. Several more are currently on the market." Accordingly, with a volume of EUR 2.3 billion spread over 24 properties, London remained the most sought-after metropolis in Europe in the hotel investment sector, ahead of Paris, Vienna and Madrid.
The hotel supply across Europe grew by 2.9% year-on-year (measured by the number of rooms), with the fastest growth in Southern and Eastern Europe, such as Poland, Italy and Austria. The Europe-wide RevPAR was 101 euros, an increase of 3 % year-on-year. Eastern Europe recorded the strongest growth at 6 %. Milan (+24 %) and Budapest (+15 %) saw the most growth at the city level.
Outlook until the end of the year remains positive on the basis of potential large-volume transactions
"A number of other large-volume transactions are being traded in the market, including several large portfolios and platforms that, if completed, will have a positive impact on transaction volumes in the European hotel investment market," said Le Fichoux. He concluded: "Europe remains a strategic investment market for many investors who are dealing with different challenges in other parts of the world. As institutional investors realign their portfolios, capital is being reallocated and reallocated. The hotel asset class is playing an increasing role in this. A particular favourite remains the hotel investment market in Southern Europe, which offers a strong mix of high-performing city and resort markets."
