European Hospitality Update

Unleashing the Potential of European Hospitality Real Estate

As the European hotel market enters a post-recovery phase, marked by heightened investment appetite, our Cushman & Wakefield European Hotels Update H1 2025 provides a focused analysis of the market’s performance, including demand growth, profitability, transaction activity, outlook, and more. 

This edition examines the ongoing expansion of the hotel sector, noting that demand continues to grow, driving improved performance across most markets. Profitability gains have been driven by both top-line improvements and tight cost management, while investment in hotels has reached its highest level in recent years. The outlook for the remainder of 2025 and beyond is optimistic, with continued growth expected despite some ongoing challenges.

European Hospitality Update Includes:

• Latest tourism trends shaping hotel demand, driven by shifting traveller behaviour, economic factors, and international visitor flows.
• Hotel performance insights, including key profitability drivers, occupancy rates, and revenue trends across major urban and resort markets.
• Investment market analysis, highlighting capital flows, emerging hotspots, and the evolving strategies of investors navigating a changing financial environment.

Why This Matters:

The hospitality sector continues to be shaped by global economic shifts, demographic trends, and evolving guest expectations. For investors, developers, and operators, staying informed is essential for identifying opportunities, mitigating risks, and making strategic decisions that drive long-term success in an increasingly competitive market.