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European hotel transaction volumes have reached more than €27bn (£23.55bn) in 2025 across 1,050 properties, marking the strongest year for sector investment since the Covid-19 pandemic began.
Preliminary results from Cushman and Wakefield have shown a 23% increase in transaction volumes compared with 2024, with activity levels sitting 28% above the 10-year average.
The UK, Spain, and France accounted for 49% of all European activity, representing a combined €13.4bn (£11.69bn).
Spain recorded a 52% year-on-year increase in volume, while Denmark, the Czech Republic, and Ireland saw the highest relative growth.
Significant portfolio transactions during the year included Brookfield’s €776m (£676.8m) acquisition of Generator Hostels and the €400m (£348.87m) sale of EasyHotel to Tristan Capital Partners.
The rebound has been attributed to improved hotel operational performance and a more stable debt environment.
Single-asset deals also contributed to the total, including the sale of the Pullman Paris Montparnasse and the Holiday Inn London Kensington High Street.
Frederic Le Fichoux, head of hotel transactions EMEA at Cushman and Wakefield, said: “The strong growth in European hotel transaction volumes in 2025 was driven by improving operational performance across most European markets, particularly in Eastern and Southern Europe. This was supported by ongoing strategic investor shifts toward ‘sheds and beds’ and a more favourable debt environment.
“While macroeconomic conditions remain complex, we expect this positive momentum to continue into 2026, with most investors planning to deploy more capital in the coming months. We are seeing a broad mix of buyer types, from value-add and owner-operators to a growing re-entry of core capital, and we expect this diversity to sustain momentum over the year.”
