European Hotel Market Update - H1 2026

The European Hotels Update for H1 2026 highlights the continued resilience of the industry, supported by sustained tourism demand, rate-led performance and investment volumes above the long-term average. The six key takeaways from H1 2026 are outlined below, while the full report is available for download via this link: https://digital.cushmanwakefield.com/marketupdate-09-2026-emea-regional-en-content-hospitality/

Sustained Turism

European travel demand continued to expand in H1 2026 despite heightened geopolitical uncertainty. Growth was led by Southern and Central & Eastern Europe, while more mature markets maintained positive, albeit slower, momentum.

Rate-Led Performance

European RevPAR increased by 3.0% year-on-year during H1 2026, driven by a 2.2% rise in ADR and supported by a 0.5 percentage point increase in occupancy. Growth was recorded across 22 countries, while only four markets reported declines.

Resilient Profits

Full-service branded hotels demonstrated resilience, with average GOP PAR increasing 1.0% year-on-year to EUR 97.6 despite profitability growth being recorded in only half of the analysed urban markets.

Investment Above Long-Term Average

European hotel transaction volumes exceeded €11.5 billion in H1 2026. While activity declined 9% year-on-year, volumes remained 22% above the 10-year average and deals above €100M increased by 30%.

High-end hotels on the radar

Luxury and Upper-Upscale hotels accounted for 46% of H1 2026 investment volume, with average prices of €522,000 and €364,000 per room, respectively. Across all transactions, the price per room increased by 9% year-on-year.

Steady Yields

Prime hotel yields remained largely unchanged in H1 2026, supported by strong investor appetite and resilient hotel fundamentals. However, elevated financing costs and geopolitical uncertainty continued to limit further yield compression.