- The transaction volume of European hotels amounted to over 11.6 billion euros in the first half of 2024, the highest half-year volume since 2019
- London remains the leading destination for investor activity, followed by Paris and Dublin
- A volume of over 20 billion euros is expected for 2024, supported by increasing debt liquidity and strong hotel performance.
London – According to new data from Cushman & Wakefield, European hotel transactions reached a five-year high in the first half of 2024. Transactions in the first half of the year rose to over €11.6 billion, the highest six-month volume since 2019.
In the second quarter, European hotel transaction volume reached €5.8 billion, almost double the volume in the same period last year (€3.0 billion in Q2 2023). Volume was boosted by several landmark hotel transactions, including the sales of the Pullman Paris Tour Eiffel, the Hilton Paris Opera, the Six Senses London, the Shelbourne Hotel Dublin and the Park Hyatt Zurich. Overall, luxury and upscale hotels accounted for almost half of the volume in the first half of 2024.
The most active markets were the UK, Spain and France, with transaction volumes of €7.8 billion – over two-thirds of the European total and 62% more than in the first half of 2023. London recorded the highest transaction volumes by city, with Paris, Dublin, Barcelona and Rome completing the top five. Looking ahead, volumes are expected to exceed €20 billion in 2024, driven by increasing credit liquidity and strong hotel performance.
European hotel business experienced a “Taylor Swift boom” in the first half of this year, with high customer demand partly driven by major events taking place across the continent, such as the 2024 Euro Championship, the Olympic Games and Swift’s “Eras” tour.
As for investment, the sharp increase in activity has been long-awaited and reflects not only clear confidence in the hotel sector but, more importantly, a convergence of prices between sellers and buyers. Given the recent reduction in base rates, now is the time for investors to re-enter the market to benefit from the expected performance and capital growth. Jon Hubbard, Head of Hospitality, EMEA at Cushman & Wakefield
Across the continent, a relatively high number of hotels are in various stages of disinvestment, primarily in the core markets of Western Europe, but we are also seeing a restart of transaction activity in the Central, Eastern and Southeastern Europe regions. This trend is being driven by improved access to finance and attractive returns in the hotel sector, which peaked in 2023 and have stabilized over the last two quarters. Combined with robust income growth, this has created a favorable environment for transactions for both sellers and buyers. Frederic Le Fichoux, Head of Hotel Transactions EMEA at Cushman & Wakefield
Although economic and geopolitical concerns remain, the capital raised must be deployed. The hotel real estate sector is becoming increasingly popular with investors as it is the only asset class in Europe with increasing transaction volumes. The increased capital allocation to hotels is not only due to recent positive performance trends and pricing adjustments, but also to long-term structural changes such as the shift in spending from goods to experiences, as well as a growing global population with more income and time to travel. Borivoj Vokrinek, Head of Hospitality Research & Strategic Advisory, EMEA at Cushman & Wakefield
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core real estate, asset and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and corporate accolades for its award-winning culture and commitment to diversity, equity and inclusion (DEI), sustainability and more. For more information, visit www.cushmanwakefield.com.
