2024 European Hotel Transactions

Introduction

After two years of reduced activity, 2024 marked a turning point for the European hotel investment market, with transaction volume surging 62% year-on-year to reach €17.4 billion^[1], the highest level recorded since 2019 (although still being only around two-thirds of the volume recorded in 2019). Easing interest rates, combined with abundant dry powder from Private Equity investors, fuelled a resurgence in deal-making, particularly in portfolio transactions where 2024 volumes were double the level recorded in 2023. Despite geopolitical uncertainties and a year filled with global elections, travel demand remained robust, reinforcing Europe’s status as a global tourism powerhouse and driving further RevPAR growth. With more transactions, higher hotel values and increased investor confidence, 2024 proved to be a year of resurgence, setting the stage for continued momentum in 2025.

Total Transaction Volume

• Total transaction volume in 2024 reached €17.4 billion, the highest level recorded since 2019, and an impressive €6.7 billion increase over 2023, with portfolios making up nearly 40% of the total.

Chart 1: Total Hotel Investment Volumes 2007-24

Pricing & Deal Size

• The average price per room was €215,300 in 2024, an increase of 9% over 2023 and around 5% higher than in 2019;
• Hotels in 2024 transacted for an average price per hotel of €29 million (a 5% increase over 2023) and had an average of 135 rooms (a 3% decrease over 2023).

Chart 2: Total Asset Quarterly Volumes 2024 vs 2023

Seasonality

• Unlike most years, transaction volume was higher in the first half of the year in 2024, although the fourth quarter still recorded the highest level of activity (however, only 10% ahead of Q2).

Chart 3: Top Countries (Total Activity By Volume)

Chart 4: Top Cities (Total Activity By Volume)

Activity by Investor Type

• In 2024, Private Equity investors were the most active, buying and selling nearly €8.6 billion in assets (a 315% increase over 2023), followed by Owner-Operators which transacted a combined €7.8 billion of properties (a 90% increase over 2023);
• Real Estate Investment Companies largely transacted similar volumes (€5.9 billion) as in 2023 (-0.9%);
• Along with Private Equity, Hotel Investment Companies were substantial net buyers in 2024 (+€1.9 billion);
• The largest net sellers, with a negative balance of €1.7 billion (compared to a positive balance of €2.8 billion in 2019) were Institutional Investors, who showed very little buying appetite in 2024 as a reflection of the higher interest rate environment.

Chart 5: Capital Flows By Investor Type (€)

Chart 6: Capital Flows By Investor Source Region (€)

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