The hospitality asset class alone accounted for around 18% of total real estate investment activity in 2024. The number of transactions rose, exceeding one hundred deals over the year, almost exclusively single-asset transactions with only a few portfolio deals.
Activity was largely concentrated in Paris and the Île-de-France region, which represented two-thirds of total volume according to BNP Paribas Real Estate, with landmark acquisitions such as the Saint-James & Albany by Pharrell Williams and associates, the Pullman Paris Tour Eiffel by Morgan Stanley, the Hilton Paris Opéra by the Copthorne Group, the Mandarin Oriental Paris by Gruppo Statuto, and the Hôtel Dame des Arts by South Korea’s Sono International. The remaining third of transaction volume was spread among regional metropolitan areas.
According to Cushman & Wakefield, France ranks among the top three most active hotel investment markets in Europe in 2024, behind the UK and Spain, which together accounted for 67% of total continental transactions. In Europe, total hotel transaction volume reached €17 billion, up 62% year-on-year, with an average price per key of €215,300, a 9% annual increase.
International capital returns to France
This momentum is driven by greater liquidity in the debt market, with interest rates stabilizing or slightly decreasing, and by strong operating performance across European hotels, which continues to attract global capital. The year was notably marked by the return of major U.S. and Asian investors.
2024 also saw an acceleration in portfolio transactions (+40% vs single-asset deals). The dry powder of private equity funds has been a key catalyst for this rebound. Investors are seeking opportunities in markets regaining momentum, with a preference for stable environments and premium/lifestyle segments, particularly in high-demand urban or leisure destinations.
“The French hotel real estate market has demonstrated remarkable resilience despite a challenging economic environment, with transactions totaling €2.5…
