In 2024, the European hotel market witnessed a remarkable surge, with the UK, France, and Spain emerging as dominant forces driving unprecedented growth. Together, these three countries accounted for a significant share of the continent’s hospitality investment activity, with the UK leading at €6.2 billion in transactions, and France and Spain each surpassing €2 billion.
Soaring room valuations, strong investor appetite, and resilient travel demand—especially from U.S. tourists—propelled the sector forward, reinforcing the region’s status as a global hospitality powerhouse and setting a robust foundation for continued momentum into 2025.
The European hotel market ended 2024 on a strong note, with high levels of investor confidence and positive performance indicators across the continent. Optimism remains for 2025 despite ongoing geopolitical developments, driven by continued travel demand from the U.S.
and growing interest in European hotel assets.A recent webinar on valuation trends in the European hotel market outlined data from 2024 and insights for the year ahead. Despite challenges such as inflation and trade disputes, signs of strength and resilience in the sector persist.
Resilience Amid Global UncertaintyGeopolitical tensions and trade disputes are expected to continue through 2025. These challenges, however, are pushing Europe toward economic self-reliance. This shift is anticipated to stimulate domestic and intra-European tourism, providing ongoing support.