European hotel deal volumes reached $24.3 billion in 2024, a 37% increase over the previous year, and marking the highest volume since 2019, according to data from Cushman & Wakefield.
The U.K. led with $8.5 billion in transactions, followed by Spain and France. Greece, Norway and Ireland also saw significant growth in investment activity. London remained the top city for deals, ahead of Paris and Dublin.
Cushman & Wakefield reported that $11.3 billion in transactions occurred in the second half of 2024, contributing to the annual total. The U.K., Spain and France accounted for 59% of total volume at $14.3 billion, reflecting a 38% increase from 2023.
The U.K. reclaimed its position as the leading market, with transaction volume rising 197% year over year. The four largest deals in Europe occurred in the U.K., all involving portfolio transactions: ADIA’s Marriott portfolio (33 hotels), the Village Hotels portfolio (33 hotels), the Radisson Edwardian portfolio (10 hotels) and Landsec’s Accor portfolio (21 hotels). Among the top 10 markets, Greece (+294%), Norway (+248%), and Ireland (+218%) experienced the highest percentage increases in deal volume.
London remained the most active city for investors, with $4.4 billion in transactions, followed by Paris at $1.8 billion and Dublin at $654 million.
“The European hotel market continues to attract investors looking to deploy capital. The United Kingdom, France, and Spain remain the primary drivers of transactions, accounting for more than half of total volume,” said Jon Hubbard, head of EMEA Hospitality at Cushman & Wakefield. “The upper end of the market has seen strong interest, and pricing is expected to stay competitive as new supply slows due to development costs. We anticipate further growth in 2025, supported by increased debt liquidity and solid hotel performance.”
The average transaction price per room was $177,000 in the second half of 2024, down from $204,000 in the same period of 2023. This shift reflected differences in transaction composition rather than continued discounting. Cushman & Wakefield’s analysis showed that after decompression in 2023, yields stabilized in 2024, with valuations supported by revenue growth and high barriers to entry in the upper market segment. In 2025, improving sentiment, declining financing costs, and renewed interest from core investors are expected to put downward pressure on yields, particularly for prime assets in major cities.
Private capital accounted for the largest share of transactions at 45%, up 45% from the previous year. Institutional investment represented 39% of deals, while public finance increased significantly, representing 13% of total volume, up 352% from 2023. Institutional (39%) and private (40%) sellers were the primary sources of transactions.
Investor focus remained on the high-end market, with luxury and upper-upscale properties representing 42% of total volume in 2024.
